Bank Indonesia (BI) aims to launch new regulations on the use of quick response (QR) codes. The regulation will focus on standardizing the technology and harmonizing the QR code payment system. It follows the growing use of QR codes amongst payment service providers in Indonesia.
BI has approved QR codes as a valid platform for financial transactions, but all companies and service providers with an intent to use them must get approval. The new regulations are expected to provide more specific terms related to QR code based services. Go-Pay, GrabPay, T-Cash- some of the most popular mobile payment services- are all testing QR codes already. T-Cash specifically is currently testing QR codes at 1,800 retailers and is aiming for full deployment in 2018. The use of QR codes is expected to increase adoption of mobile payments and also cut down investment costs as QR scanners are relatively cheaper than EDC machines and ATMs.
In January 2018, however, BI ordered Go-Pay to stop all of their payment services that use QR codes. BI claimed that Go-Pay had been approved for a pilot project but their current operations resemble a full product launch. Regulators may further evaluate the situation to decide whether sanctions will be placed against Go-Pay for breaching AML, consumer protection, and data privacy laws. BI did suggest Go-Pay to get a permit from the central bank for full product launching if it desires to provide the current services.