Indonesia has made a case for its unified national QR-code payment system before world leaders at the G20 Summit in South Africa, describing the initiative as a vital piece in the quest for financial inclusion.
Dubbed the Quick Response Code Indonesian Standard (QRIS), the country’s delegation to the G20 Summit noted that adoption rates for the offering have surged since its launch in 2019. Alongside its rising adoption rates, Indonesian Vice President Gibran Rakabuming Raka disclosed that digital payments in the Southeast Asian country are also surging to record highs.
“Our national digital payment system, QRIS, demonstrates how simple and low-cost digital solutions can foster economic participation and reduce inequality,” said Raka.
QRIS is described to be a “simple and accessible” payment solution, allowing any registered payment app to connect with a merchant’s code. It has found wide utility among small merchants and micro-enterprises (MSMEs), allowing them to sidestep the requirement for expensive card terminals.
For Indonesian consumers, there is little need for cash-based transactions, as QRIS supports microtransactions and last-mile vendors. Since its launch, QRIS has facilitated e-commerce across Indonesia, supporting online payments and donations via QR codes shared digitally, thereby eliminating the need for a physical presence.
In his keynote address, Raka disclosed that Indonesia will not rest on its laurels in digital transactions, declaring support for the G20’s plan for sustainable finance and urging the economic bloc to close financing gaps in its member states.
To achieve this, Raka stated that member states will have to pursue accessible and equitable financing for SMEs and MSMEs, using debt relief and blended finance. Raka revealed that Indonesia has allocated a significant portion of its budget to support small businesses while developing climate-resilient infrastructure.
Meanwhile, the vice president urged the G20 to examine the economic benefits of Bitcoin and other digital assets, but cautioned about the inherent risks to the broader financial system.
At the bleeding edge of innovation
A bird’s-eye view of Indonesia’s payment landscape reveals a forward-thinking approach, backed by a string of government policies and changing consumer behavior. The country has wrapped up a proof-of-concept for a wholesale central bank digital currency (CBDC) in an attempt to keep pace with the rest of the world.
Indonesia has recorded similar strides with artificial intelligence (AI), launching an AI Center of Excellence to increase adoption across key sectors of the local economy, and has recently turned to facial recognition technology to improve SIM registration processes while stifling the activities of scammers.
Digital wallet usage lags
Elsewhere, new research has revealed that less than 50% of users rely on the digital wallet offerings to pay their bills.
The report, a brainchild of technology firm KUBRA, revealed that digital wallets remain underutilized for bill payments, with only 42% of digital wallet users utilizing their functionality. Dubbed the 2025 Digital Wallets Research, analysts pegged the number of consumers using digital wallets at an impressive 61%, indicating a strong growth trajectory from its 2022 report.
The primary reason for the low levels of bill payment utility with digital wallets centers around security concerns. A wave of hacks on digital asset service providers has slowed the adoption of bill payment use cases, with consumers citing limited awareness as another reason.
Other factors impeding the growth include merchant acceptance, limited integration, KYC, transaction limits, and extra charges. Meanwhile, users in certain regions have pointed to low smartphone and banking penetration as a major factor limiting digital wallet usage.
“Our research gives us a real-world view of how consumers want to pay,” said a KUBRA analyst. “By understanding their behaviours and concerns, we can help our clients close the gap between innovation and everyday experience.”
Despite the slow pace of bill payments, the report noted that the vertical is poised to experience a surge in digital wallet utility, with the convenience of one-tap payments, 24/7 access, and saved beneficiaries considered key factors for an incoming adoption boom.
Furthermore, the benefits of automation, which allow consumers to schedule recurring payments, will drive growth in the coming years. KUBRA’s report highlighted a growing acceptance with telecommunication companies and government agencies leading the charge.
Already, governments have signaled their approval for stablecoins, while other jurisdictions are exploring CBDCs. A new bill pushing to allow Americans to pay federal taxes with BTC is gathering steam, with several pundits pointing to a string of benefits.
Digital wallets surge to record highs
Several reports have predicted that digital wallets will become the leading payment method by the end of the decade amid a surge in numbers in 2025.
Currently, digital wallets account for 16% of all online purchases, closing in on card transactions. Cash usage in Asia fell to new lows as consumers embrace digital wallets for transactions, with Africa and Latin America joining the trend.
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Source: https://coingeek.com/indonesia-pushes-qris-at-g20-42-use-e-wallets-for-bills/