Bank Indonesia launches new country-wide digital payment system
Indonesia’s central bank on December 21 launched a new retail payment system called Bank Indonesia Fast Payment, or BI-Fast, aimed at reducing cash use in the country, lower the cost of financial transactions and increase financial inclusion of the unbanked.
The new system would allow real-time, secure money transfers of up to 250 million rupiah ($17,619) at a maximum cost of 2,500 rupiah ($0.17) per transaction for customers, Bank Indonesia governor Perry Warjiyo said. The current interbank money transfer fee for customers using the national payment gateway is 6,500 rupiah ($0.46) per transaction.
Digital payments and banking boosted by Covid-19 pandemic
BI-Fast comes as the Covid-19 pandemic has boosted the use of digital payments and e-money banking transactions in the country, which have risen by 47 per cent and 63 per cent to reach 3,877 trillion rupiah ($273.2 billion) and 31.3 trillion rupiah ($2.2 billion), respectively, on a yearly basis in November, according to central bank data.
“BI-Fast will accelerate the digitalisation of the national economy, integrate the payment system industry from end to end-digital banking, fintech, e-commerce and consumers, promote economic and financial inclusion and support the national economic recovery,” Warjiyo said.
BI-Fast goes live in December, starting with individual credit transfer services before expanding to bulk credit, direct debit and request-for-payment transactions. In a first stage, 21 banks will provide the BI-Fast service, and in end-January 2022, it will also be opened for other banks and non-banks.
Telephone numbers instead of bank account numbers
The system uses customers’ phone numbers to complete transactions as an alternative to account numbers. BI-Fast also claims to have an advanced technology platform and strict security system and seeks to become a potential game-changer in facilitating further developments in digital transactions, including cross-border settlements.
BI-Fast is part of the implementation of the national payment system digitalisation outlined in the 2025 Indonesia Payment System blueprint as of May 2019, the central bank said.
Indonesia’s central bank on December 21 launched a new retail payment system called Bank Indonesia Fast Payment, or BI-Fast, aimed at reducing cash use in the country, lower the cost of financial transactions and increase financial inclusion of the unbanked. The new system would allow real-time, secure money transfers of up to 250 million rupiah ($17,619) at a maximum cost of 2,500 rupiah ($0.17) per transaction for customers, Bank Indonesia governor Perry Warjiyo said. The current interbank money transfer fee for customers using the national payment gateway is 6,500 rupiah ($0.46) per transaction. Digital payments and banking boosted by Covid-19...
Indonesia’s central bank on December 21 launched a new retail payment system called Bank Indonesia Fast Payment, or BI-Fast, aimed at reducing cash use in the country, lower the cost of financial transactions and increase financial inclusion of the unbanked.
The new system would allow real-time, secure money transfers of up to 250 million rupiah ($17,619) at a maximum cost of 2,500 rupiah ($0.17) per transaction for customers, Bank Indonesia governor Perry Warjiyo said. The current interbank money transfer fee for customers using the national payment gateway is 6,500 rupiah ($0.46) per transaction.
Digital payments and banking boosted by Covid-19 pandemic
BI-Fast comes as the Covid-19 pandemic has boosted the use of digital payments and e-money banking transactions in the country, which have risen by 47 per cent and 63 per cent to reach 3,877 trillion rupiah ($273.2 billion) and 31.3 trillion rupiah ($2.2 billion), respectively, on a yearly basis in November, according to central bank data.
“BI-Fast will accelerate the digitalisation of the national economy, integrate the payment system industry from end to end-digital banking, fintech, e-commerce and consumers, promote economic and financial inclusion and support the national economic recovery,” Warjiyo said.
BI-Fast goes live in December, starting with individual credit transfer services before expanding to bulk credit, direct debit and request-for-payment transactions. In a first stage, 21 banks will provide the BI-Fast service, and in end-January 2022, it will also be opened for other banks and non-banks.
Telephone numbers instead of bank account numbers
The system uses customers’ phone numbers to complete transactions as an alternative to account numbers. BI-Fast also claims to have an advanced technology platform and strict security system and seeks to become a potential game-changer in facilitating further developments in digital transactions, including cross-border settlements.
BI-Fast is part of the implementation of the national payment system digitalisation outlined in the 2025 Indonesia Payment System blueprint as of May 2019, the central bank said.
