While the Indonesian e-commerce scene might be blooming and thriving, its supporting payment infrastructure still poses as a challenge to small and medium enterprises (SMEs). In addition to the great deal of cash transactions, many Indonesian SMEs have difficulties with online payment facilities provided by banks.
After a year of operating in Indonesia, iPaymu, an online payment processor, recently launched its mobile payment with Quick Response Code (QR Code) feature to facilitate payments to SMEs.
Available on the Android platform, users have to login, and point the smartphone to the barcode or QR Code at the merchant store. It is understood that iPaymu has already tested the service in one of the universities in Malang, where food court vendors use the QR Code to verify payments.
Riyeke Ustadiyanto, CTO, iPaymu, said that the launch of QR code-based mobile payment will complement the digital payment ecosystem provided by iPaymu to boost the growth of Indonesia e-commerce industry.
“This service will become (an) alternative to EDC machine from bank,” said Ustadiyanto at the launch of iPaymu’s new office in South Jakarta. EDC, which stands for electronic data capture, (also known as a card swipe machine) is a machine provided by banks to facilitate credit and debit card payments.
However, it does not seem to be easily obtainable, as institutions are often required to have been legally listed as a company. There is also a minimum transaction amount required, which can be difficult for SMEs since their businesses can be rather unstable.
He added, “Now we have 18,000 users. Most of them are SME all over Indonesia. Within three to six months ahead, we are targeting the number to become 20,000 users.”
iPaymu has cooperated with more than 21,000 ATM networks and 137 national banks. Its new service has also been connected with Indonesia’s Post Office with more than 4,000 branches across the country.