QR Payment Connectivity Bridges Two Economies
On May 7th, Indonesia and China announced the launch of a cross-border QR payment connectivity at Bank Indonesia in Jakarta. This initiative allows millions of merchants to accept payments through Ant International’s Alipay+ and UnionPay International.
Under the guidance of Bank Indonesia and the People’s Bank of China, the initiative links Indonesia’s QRIS with China’s leading payment systems. Consumers from both countries can now make seamless payments using their home e-wallets at over 40 million QRIS merchants in Indonesia and more than 80 million Alipay and UnionPay QR codes in China.
This significant step in regional connectivity enhances commerce between the 1.4 billion Chinese people and the 280 million citizens of Southeast Asia’s largest economy. At the event, Michael Guo, General Manager for Southeast Asia, South Asia, and ANZ at Ant International, highlighted the importance of interoperability, stating, “Interoperability is the foundation of cross-border payments. Through Alipay+, we connect national QR schemes with global merchants and wallet users.”
Boosting trade and tourism, the initiative is expected to significantly enhance travel convenience and increase merchant revenues, especially for micro and small enterprises. In 2019, Chinese arrivals to Indonesia reached a six-year high, with over 2.1 million visitors, highlighting the importance of seamless payment methods for tourism.
The cross-border payment system encourages the use of local currencies in transactions. This improves exchange rate visibility and fosters economic connectivity across the region. Alipay+ by Ant International serves as the technical platform for this interoperability, offering financial institutions and merchants a unified solution for digital payments.
This initiative aims to create an inclusive payments ecosystem, facilitating regional trade and digital growth. Integration of national payment networks across Asia is expected to continue, as the success of the QRIS-China linkage showcases the potential for expanded cross-border connectivity.
This cross-border payment linkage not only benefits large businesses but also micro and small enterprises, which constitute over 99% of all businesses in Indonesia. For local Indonesian merchants, adopting the new payment system requires no new hardware or integration, making it a seamless transition.
The initiative opens new revenue streams for local businesses by attracting international customers, thereby driving the growth of tourism and trade. This cross-border payment system is a strategic move to strengthen economic ties and promote digital economic growth between two major Asian economies.
