Bank Indonesia (BI) has obliged the use of the Quick Response Code Indonesian Standard (QRIS) for all Payment System Service Providers (PJSP) since January 1, 2020. Currently, there are already 60 PJSPs QRIS partners and 6.55 million registered merchants using QRIS. However, the expansion of QRIS services is not limited to being able to be used domestically. Bank Indonesia and the Indonesian Payment System Association (ASPI) have a strategic plan so that the QRIS Cross Border service can start running in 2021.
QRIS Cross Border is one of the collaborative initiatives to build standardization of settlement infrastructure for cross-border trade, remittances, retail payment systems, and capital markets. That way, Indonesian people will be able to make payments abroad by simply scanning the QRIS code. It applied to foreign tourists who travel to Indonesia too. Later, they can make payments by scanning the QRIS code through the application they usually use in their country and already supports QRIS.
The presence of the QRIS Cross Border is also following the points contained in the ASEAN Economic Blueprint 2025, one of which is about improving and standardizing the payment system. Therefore, the QRIS Cross Border initiative can provide a positive impact on the implementation of a regional payment system that is safe, efficient, and competitive.
In practice, there are five things as the primary guide for this QRIS Cross Border successful implementation. The five guidelines are:
- Promote ASEAN Payments Connectivity and regional linkages of payment systems through open infrastructure and retail payments interconnection.
- The form of multilateral implementation with various countries.
- Promoting financial inclusion, tourism, and digital economy (SME) inclusion
- Legal and regulatory compliance in both jurisdictions
- Maximizing the local currency settlement model
Currently, the government has signed an MoU with the Bank of Thailand and Bank Negara Malaysia for the implementation of payments through the QRIS Cross Border. However, QRIS Cross Border may also be able to be used in countries other than Thailand and Malaysia because there are plans to expand cooperation with several other countries in Asia.
The cooperation model that will be implemented is Switching to Switching. This means that each GPN switching will be connected to the destination country switching by using API and standard messaging in the integration process. Then, Settlement will be carried out using the LCS (Local Currency Settlement) method through ACCD (Appointed Cross Currency Dealer) Bank.
Bank Indonesia and ASPI have also adopted the international standard EMV Co in the process of preparing the QRIS. Using the standard of EMV Co, which is open source, wider interconnection of payment system instruments can be realized so that interoperability between providers, and countries becomes easier.