Latest news with #QRIS
Business Times
7 days ago
- Business
- Business Times
Asean's QR linkage push to go local could chip away at greenback's grip
[HO CHI MINH CITY] Armed with just his phone, Singaporean digital nomad Bobby Liu pays for coffee across Asia by scanning QR codes from Thailand's PromptPay, Indonesia's QRIS and Malaysia's DuitNow – all through his local banking or e-wallet apps, no cash or cards needed. Now based in Hanoi, he's eyeing Vietnam's entry into this cross-border payment club, as it is linking up with Singapore, and the rest of Asean, to enable instant QR transactions across millions of merchant touchpoints. 'Imagine what that kind of instant payment can do for small businesses – it will significantly improve their cash flow,' said Liu, a fintech entrepreneur and former venture capitalist. Such instant payment solutions, he said, will be key to boosting South-east Asian economies, which are dominated by small and medium-sized enterprises (SMEs). He also expects these cross-border innovations to take a chunk out of legacy services for money transfers such as the US's Swift network and credit card rails like Visa and Mastercard, as they offer faster, cheaper cross-border payments settled directly in local currencies, bypassing the US dollar as an intermediary. Leader in digital payments Over the past few years, the success and speed of implementing cross-border QR payment linkages in South-east Asia have been buoyed by the maturity of mobile payment penetration and national QR standards within each respective market, positioning the region as a leader in digital payments, experts say. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up According to a DataReportal report, as at February this year, QR code payment adoption among Internet users aged 16 and above in Malaysia, Thailand, Vietnam, and Singapore exceeded the global average of 50.8 per cent, with Malaysia (66.1 per cent) and Thailand (61.5 per cent) ranking just behind China (67.4 per cent) globally. In an effort to expand the growth beyond domestic markets, the Regional Payment Connectivity initiative was launched in 2022 by five Asean member states – Singapore, Indonesia, Thailand, Malaysia and the Philippines. Since then, Vietnam, Laos, Brunei and Cambodia have been added to the initiative. Its focus in the past three years has been to enable fast, seamless and more affordable cross-border payments in local currencies through standardised and interoperable QR codes, especially for retail transactions of small businesses, tourists, and migrant workers. This has required bilateral efforts between each pair of countries to ensure technical compatibility and compliance with their respective regulatory frameworks. 'A single QR payment system across the region would offer a real alternative to US-based payment networks for retail users and small businesses,' said Nawazish Mirza, professor of finance at Excelia Business School in France. 'They can chip away at the dollar's dominance in daily cross-border spending and help boost the use of local currencies over time.' Advancing local currency use In the joint statement at the 42nd Asean Summit held in May 2023, the 10-member bloc called for regional payment connectivity and promoted local currency transactions to support regional economic growth as well as strengthen financial resilience and integration. According to the 2023 policy position paper of Asean+3 Macroeconomic Research Office (Amro), the introduction of cross-border QR linkages between members, along with improvements to real-time gross settlement systems, offers significant potential to facilitate local currency transactions, which could mitigate the region's reliance on foreign currencies. Syed Ahmad Taufik Albar, group chief executive of community financial services at Maybank, underlined the benefits of such payment connectivity in areas like cross-border trade among micro-enterprises and SMEs whose products have high contents of domestic and Asean inputs, as well as in intra-Asean foreign direct investment and tourism. 'A successful implementation of a cross-border QR system across Asean's 10 member states will facilitate deeper Asean integration,' he said. This year, the position was highlighted again at the 46th Asean Summit in Kuala Lumpur, with the bloc's Economic Community Strategic Plan 2026-2030 noting that Asean will 'promote the use of local currencies to reduce the region's vulnerability to exchange rate fluctuations and external economic and financial shocks'. The strategic plan was developed during a period when the US dollar – traditionally dominant in global trade and investment – had fallen to its lowest levels in several years, and the US-led tariff hikes forced nations to engage in prolonged trade negotiations. Interest from Asian powerhouses The payment connectivity has now witnessed strong interest from Asian powerhouses like China and Japan to plug their digital payment networks into the Asean ecosystem, paving the way for better usage of local currencies for intraregional transactions and a step away from US-dominant systems. Last year, Japan's Ministry of Economy, Trade and Industry said it is working to ensure the nation's domestic JPQR payment system is compatible with the QR standards in seven Asean countries. The monetary collaboration between China and its Asean partners has also deepened, with initiatives such as bilateral currency swap agreements and the rollout of cross-border QR code payment linkages. Following the successful two-way QR payment connectivity with Cambodia earlier this year, China is advancing similar models through government-to-government cooperation across the South-east Asian region, with Vietnam, Indonesia in the pipeline. In May, Bank Indonesia announced that Indonesian citizens will be able to make transactions using the rupiah currency in China and Japan through its cross-border QR payment system from Aug 17 this year. Beyond government efforts, private financial institutions such as banks, digital payment firms and e-wallet operators are also playing a role in expanding the cross-border connectivity initiative. CBDC as the next opportunity Mirza believes that despite Asean's significant progress in regional QR payment connectivity, these systems are unlikely to replace Swift or major card networks for large-scale cross-border corporate transactions in the near term. 'To move local currency usage into large trade and investment flows, central bank digital currencies (CBDC) are now taking centre stage,' he added. Projects like mBridge have already piloted the use of CBDCs for cross-border payments among five participating central banks, including the People's Bank of China and the Bank of Thailand, with over 25 other central banks – such as those of Malaysia, the Philippines, and Indonesia – serving as observers. The project has entered the minimum viable product phase since 2024. By utilising the distributed ledger technology and smart contracts, CBDCs could reduce the need for financial intermediaries in cross-border payments and automate high-volume transactions in local currencies, significantly reducing both transaction speed and cost, Amro noted in its papers published in June 2025. Some 90 per cent of central banks were reportedly engaging in work relating to CBDCs, with China taking the lead by introducing e-CNY for domestic use. 'The speed of wider adoption will depend on progress in regulation and technology. Still, the direction is clear,' Mirza said. 'CBDCs are poised to become a key component of the region's next wave of financial integration.'
The Star
02-08-2025
- Lifestyle
- The Star
Window shopping rises as middle-class spending slows in Jakarta
JAKARTA: As living costs rise and disposable income shrinks, many Jakartans are increasingly turning to malls not for shopping, but for strolling. Window shopping, once considered a casual pastime, has become a meaningful part of urban life, offering comfort and even emotional relief amid economic pressure. In recent months, social media has buzzed with humorous acronyms like Rojali (rombongan jarang beli, or "groups that rarely buy") and Rohana (rombongan hanya nanya, or "groups that only ask"), reflecting a growing trend of mall-goers who browse but seldom purchase. The Rojali-Rohana phenomenon has struck a chord with many Jakartans living in a city teeming with nearly 100 shopping malls, but with few accessible public spaces. On a typical Thursday afternoon, while much of Jakarta battles traffic jams and office deadlines, 37-year-old Fitria steps into Plaza Senayan, a four-story upscale mall in Central Jakarta, without a single intention to buy anything. Calling herself a regular mall-goer, Fitria spends hours browsing store displays, trying on clothes and testing perfumes. F or her, window shopping brings joy as she can physically explore into catalogs of products at stores before making any purchases online. 'Visiting malls feels relieving because I can experience the products in person without the pressure to spend,' said the housewife from South Jakarta's Kebayoran Baru on Thursday (July 31). She added that malls offer a comfortable indoor escape for her daily routine, especially as the outdoor pollution is often overwhelming. For Theo, a 19-year-old university student, malls offer more than just consumer goods, they provide an affordable social and recreational venue. 'This is a practical alternative for walking around,' he said. ' We don't always have to buy something, but malls still offer entertainment like movies or coffee shops.' Both Fitria and Theo said they are unbothered by the Rojali-Rohana stereotypes, asserting that malls should be inclusive spaces, not consumption-driven obligations. While window shopping is not new, the growing number of people doing it without spending has raised concerns about economic slowdown. A recent report from the Mandiri Institute, the research arm of state-owned lender Bank Mandiri, linked the phenomenon to a weakening middle-class purchasing power and more selective spending behaviour. Analyzing Quick Response Code Indonesian Standard (QRIS) transaction data from January to May, the report shows a significant shift toward 'experiential' spending. Transactions at experience-based merchants like restaurants, cinemas and playgrounds jumped 102 per cent, while those at product-based retailers grew by only 62.5 per cent. 'The weakening purchasing power is arguably caused by financial pressures, forcing the middle class to opt for cheaper shopping methods [online],' said Mandiri Institute analyst Nabila Kusworo on Thursday. Meanwhile, Psychologist Hastaning Sakti of Diponegoro University noted that beyond economic reasons, window shopping can serve as a form of retail therapy, a way to feel emotionally uplifted by the act of browsing, even without buying. 'For many urban dwellers, it provides a sense of both prestige and comfort,' she said. Urban sociologist Rakhmat Hidayat from Jakarta State University adds that the rise of mall strolling is also rooted in Jakarta's lack of adequate public space. 'Visiting malls is essentially free. People don't have to buy anything [while they can enjoy] spacious spaces'. - The Jakarta Post/ANN
Free Malaysia Today
24-07-2025
- Business
- Free Malaysia Today
Indonesia brushes off concern on data transfer to the US
Some American companies complained Indonesia's QRIS digital payment system did not benefit their operations. (QRIS Indonesia pic) JAKARTA : Indonesia on Thursday denied warnings that the transfer of personal data agreed in a trade deal with the US this week would put people's rights at risk. After weeks of negotiations, the White House said that it had reached an agreement with Jakarta that lowered tariffs on US-bound goods from the Southeast Asian nation, from 32% to 19%. US President Donald Trump said the reduction was in return for significant purchase commitments from Jakarta, including the purchase of 50 Boeing jets. The White House said Tuesday that Indonesia had also committed to removing barriers that impact digital trade and will provide certainty regarding the transfer of personal data to the US. Jakarta said negotiations on the details continued to be held. But experts warned the personal data transfer to a foreign country would be a further drain on Indonesia's already weak data protection apparatus. 'If there's a leak or improper use of the data, solving the problem would be a lot more complicated if the data is in another country,' Bhima Yudhistira Adhinegara, executive director of the Center of Economic and Law Studies. He said some American companies had been complaining about the Indonesian digital payment system, Quick Response Code Indonesian Standard, or QRIS, which they believed did not benefit their companies. With the tariff deal, the companies can access citizens' data, Bhima said. 'I don't know if the government is aware of how serious this is. We open all access to our data just for a lower tariff.' However, Jakarta reassured that the system was safe. 'The government assures that the data transfer to the US will not be carried out carelessly,' said digital communication minister Meutia Hafidz in a statement Thursday. 'On the contrary, the whole process will be conducted within a secure and reliable data governance framework.' She added that 'the data transfer between countries would still be carried out under the tight supervision of the Indonesian authorities, with high caution, based on the national law.'
New Straits Times
22-05-2025
- Business
- New Straits Times
Age of Asean: Building trust in Southeast Asia's digital future
As Asean is positioning to be the heart of digital economy, fostering trust is key in reaping the benefits of growing digitalisation and further empowering the vulnerable segments of the population. In the bustling streets of Jakarta, 50-year-old Siti sits behind her food stall, where the aroma and sizzle of fried rice and grilled satay mingles with the hum of passing motorbikes. With a range of digital food delivery and e-commerce platforms helping her connect with more customers, business has never been better. Siti is just one of 70 million micro entrepreneurs driving economic growth in the Asean region. Over the last two decades, the region has seen its real GDP grow by five per cent annually, reaching US$3.8 trillion. in 2023, making it the fifth-largest economy globally. With digitalisation empowering microenterprises like Siti's, it is no surprise that Asean's digital economy is poised to reach almost US$2 trillion by 2030. A foundational piece of this growing digital economy is the proliferation of instant payment systems (IPS), more recently, the rapid adoption of low-cost national QR payment channels. From Indonesia's QRIS to Cambodia's KHQR and Thailand's PromptPay, Asean has swiftly adopted the digital way to pay, with the share of digital payments to gross transaction volume already surpassing cash with just 48 per cent in 2022 to about 56 per cent in 2024. With payments transmitted directly to the merchant's digital accounts, microenterprises can now easily manage their books, helping them monitor the growth of their business. Asean continues to make strides in building and expanding cross-border QR payment linkages. Through the commitment and hard work of the Asean Working Committee on Payment and Settlement Systems (WC-PSS), several Asean countries – Cambodia, Indonesia, Laos, Malaysia, Singapore, Thailand, and Vietnam – are now able to conduct cross-border QR payment or person-to-person funds transfers. This translates into bigger business opportunities for microenterprises. Yet despite the increasing digital savviness, microenterprises still face hurdles in accessing much-needed financing. This is exacerbated by microenterprises' mistrust in the digital ecosystem due to cases of fraud, hidden fees, and lack of recourse, which could potentially undermine their growth. In Indonesia, for example, only 41 per cent of merchants using QRIS completed at least one transaction per month, and 18 per cent remained dormant, largely due to trust erosion from unexpected charges and unresolved disputes. It is therefore imperative to build and ensure MSMEs' continued trust in digital payments and the broader financial ecosystem. The United Nations' Better Than Cash Alliance's Trust Quotient Policy Toolkit, which was developed together with the Asean Working Committee on Financial Inclusion (WC-FINC) and noted by Asean Ministers and Central Bank Governors, reflects the region's collective commitment to this vision. Focusing on fraud, hidden fees, and lack of recourse, the Trust Quotient Policy Toolkit provides policy and regulatory recommendations to promote clear pricing, accessible dispute resolution, and transparent data practices, which will then help ensure micro-merchants confidently adopt digital payments in a safer, more accountable ecosystem. Ensuring quick and seamless recourse mechanisms, particularly for small-value disputes, is critical for fostering trust as delays or unresolved issues can significantly damage confidence. Programmes such as the 'BOB' (BSP Online Buddy) chatbot initiative by Bangko Sentral ng Pilipinas showcase how technology can simplify dispute resolution and build trust. Similarly, the Philippines' Paleng-QR Ph and Indonesia's QRIS SIAP have helped merchants through financial literacy, streamlined tools, and responsive support. Simplified data privacy disclosures can further empower merchants to navigate digital systems confidently. Moreover, integrating support for digital financial services into existing MSME development programmes can be transformative. Indonesia's Jakpreneur program, for instance, onboards merchants to digital platforms but also provides training in financial literacy and business management. For Siti, the success of her business relies not just on the convenience of digital payments but her trust in continued use of digital payments which grants her a formal financial history. By addressing challenges such as hidden fees, lack of recourse, and data privacy concerns, Asean can ensure that entrepreneurs like Siti feel confident in trusting and embracing digital transformation and ensure that no enterprise is left behind.
Barnama
21-05-2025
- Business
- Barnama
- The Age of ASEAN: Building Trust in Southeast Asia's Digital Future
Opinions on topical issues from thought leaders, columnists and editors. As ASEAN is positioning to be the heart of digital economy, fostering trust is key in reaping the benefits of growing digitalisation and further empowering the vulnerable segments of the population. Siti is just one of 70 million micro entrepreneurs driving economic growth in the Association of Southeast Asian Nations (ASEAN) region. Over the last two decades, the region has seen its real GDP grow by 5 per cent annually, reaching US$3.8 trillion in 2023, making it the fifth-largest-economy globally. With a range of digital food delivery and e-commerce platforms helping her connect with more customers, business has never been better. While Siti still accepts cash, these digital apps have made it easier for customers to pay, and for Siti to manage her finances and bookkeeping, with a simple tap on her phone. In the bustling streets of Jakarta, 50-year-old Siti (name changed) sits behind her food stall, where the aroma and sizzle of fried rice and grilled satay mingles with the hum of passing motorbikes. With digitalisation empowering microenterprises like Siti's, it is no surprise that ASEAN's digital economy is poised to reach almost US$2 trillion by 20230. A foundational piece of this growing digital economy is the proliferation of instant payment systems (IPS) and, more recently, the rapid adoption of low-cost national QR payment channels. From Indonesia's QRIS to Cambodia's KHQR and Thailand's PromptPay, ASEAN has swiftly adopted the digital way to pay, with the share of digital payments to gross transaction volume already surpassing cash with just 48 per cent in 2022 to about 56 per cent in 2024. With payments transmitted directly to the merchant's digital accounts, microenterprises can now easily manage their books, helping them monitor the growth of their business. ASEAN continues to make strides in building and expanding cross-border QR payment linkages. Through the commitment and hard work of the ASEAN Working Committee on Payment and Settlement Systems (WC-PSS), several ASEAN countries – Cambodia, Indonesia, Lao PDR, Malaysia, Singapore, Thailand and Viet Nam – are now able to conduct cross-border QR payment or person-to-person funds transfers. This means that financial processes that used to take days are now completed within minutes, enabling remittances, business payments including e-commerce, and tourism-linked transactions. This translates into bigger business opportunities for microenterprises. Advancing digital payments and finance platforms – which is also reflected in the ASEAN Digital Masterplan 2025, the Bandar Seri Begawan Roadmap, and the ASEAN Digital Economy Framework Agreement (DEFA) – is a testament of ASEAN's collective vision for inclusive digital growth and increased accessibility especially for the smallest businesses, offering a more seamless system that lowers barriers to entry and reduces operational costs. Trust - Integral to Fostering Inclusion Digital payments clearly serve as an entry point to broader financial services that help boost productivity and incomes for microenterprises. Yet, despite the increasing digital savviness, microenterprises still face hurdles in accessing much-needed financing. This is exacerbated by microenterprises' mistrust in the digital ecosystem due to cases of fraud, hidden fees, and lack of recourse, which could potentially undermine their growth. In Indonesia, for example, only 41 per cent of merchants using QRIS completed at least one transaction per month, and 18 per cent remained dormant, largely due to trust erosion from unexpected charges and unresolved disputes. It is therefore imperative to build and ensure MSMEs' continued trust in digital payments and the broader financial ecosystem. The United Nations' Better Than Cash Alliance's Trust Quotient Policy Toolkit, which was developed together with the ASEAN Working Committee on Financial Inclusion (WC-FINC) and noted by ASEAN Ministers and Central Bank Governors, reflects the region's collective commitment to this vision. The toolkit is testimony to the key role of policies and regulations as nascent IPS are being built and connected across borders. Focusing on fraud, hidden fees, and lack of recourse, the Trust Quotient Policy Toolkit provides policy and regulatory recommendations to promote clear pricing, accessible dispute resolution, and transparent data practices, which will then help ensure micro-merchants confidently adopt digital payments in a safer, more accountable ecosystem. Ensuring quick and seamless recourse mechanisms, particularly for small-value disputes, is critical for fostering trust as delays or unresolved issues can significantly damage confidence. Programmes such as the 'BOB' (BSP Online Buddy). chatbot initiative by Bangko Sentral ng Pilipinas showcase how technology can simplify dispute resolution and build trust. Similarly, the Philippines' Paleng-QR Ph and Indonesia's QRIS SIAP have helped merchants through financial literacy, streamlined tools, and responsive support. Simplified data privacy disclosures can further empower merchants to navigate digital systems confidently. Moreover, integrating support for digital financial services into existing MSME development programmes can be transformative. Indonesia's Jakpreneur programme, for instance, onboards merchants to digital platforms but also provides training in financial literacy and business management. For Siti, the success of her business relies not just on the convenience of digital payments but her trust in continued use of digital payments which grants her a formal financial history. By addressing challenges such as hidden fees, lack of recourse, and data privacy concerns, ASEAN can ensure that entrepreneurs like Siti feel confident in trusting and embracing digital transformation and ensure that no enterprise is left behind. This, in turn, increases her opportunities to access formal credit to grow her business and income. -- BERNAMA Satvinder Singh is Deputy Secretary-General of ASEAN for ASEAN Economic Community. Thomas Beloe is Director, UNDP Sustainable Finance Hub. (The authors acknowledge the valuable inputs provided by the UNDP Bangkok Regional Office for this article.)
