China Has Secretly Colonized ‘QRIS Neighboring RI’

Jakarta, CNBC Indonesia – China’s payment platform, Alipay, is reportedly looking to enter Indonesia. Secretly, Ant Group’s application can now be used in Singapore and Malaysia.

Ant Group, a fintech company founded by Jack Ma, is currently pursuing expansion overseas through the Alipay+ service. Through Alipay+, Ant Group wants to become a bridge for digital payment applications throughout the world.

“We see that people want to use their hometown e-wallets when they travel abroad. They don’t want to have to move their cards to another application,” said Douglas Feagin, Senior Vice President at Ant Group, as quoted by CNBC International, Monday ( 6/5/2024).

Ant Group launched Alipay+ in 2020. Through this platform, foreigners can use applications from their home country to make payments in China by scanning the Alipay QR code. On the other hand, the Alipay application can be used by Chinese residents to pay abroad in collaboration with local partners.

Ant Group has now collaborated with an integrated payment system similar to QRIS in Singapore (SGQR) and Malaysia (DuitNow QR).

“Ant Group’s initial vision of global expansion is Southeast Asia. The company has shares in digital wallets in Southeast Asia’s largest economy,” said Zennon Kapron from Kapronasia.

Ant is now also expanding into other emerging markets such as Sri Lanka and Cambodia. The company is also expanding to Europe and the Middle East through collaboration with European e-wallet called Tinaba and Nexi from Dubai.

In Indonesia, the Ant Group boss met with the Minister of Communication and Information, Budi Arie Setiadi.

“We really want to bring this solution to Indonesia. and we are very active in discussions with local partners, with Bank Mandiri and Dana,” said Ant International Chief Executive Officer, Ant Group Senior Vice President Yang Peng.

He explained that currently they are actively discussing with local partners, including Bank Mandiri and Dana. From a regulatory perspective, they also approached related parties such as Bank Indonesia and the Indonesian Payment Systems Association (ASPI).

Not yet reported to Bank Indonesia

The discussion is to see whether the solution they offer can attract foreign tourists who use e-wallet who have just come to Indonesia to be able to use the payment options they have used here.

“What we believe is that QR will provide more benefits for SMEs. And currently only expensive hotels, department stores, can accept money by credit card from foreign tourists. But for many micro merchants in Indonesia, accepting credit cards is very expensive “And actually many of them are already using QR to accept payments from local customers,” he explained.

When asked when Alipay+ would be present in Indonesia, he could not confirm it. He only stated that he hoped it would be possible in the near future.

“Hopefully between this year, matters of technology, regulations and local partnerships will still be under discussion and preparation, hopefully they can be accelerated,” said Yang Peng.

However, Deputy Governor of Bank Indonesia Filianingsih Hendarta said that BI had not received a formal application from Ant Group regarding Alipay. To bring in Alipay, Ant Group must have permission as a payment system operator.

“Indeed, there has been no formal application from Alipay to BI as a payment system service provider,” he said, Wednesday (24/4/2024).

He explained that companies wishing to provide payment services in RI should have held a preliminary meeting with BI.

“Usually what the applicant does, is usually a pre-consultative meeting,” said Filianingsih.

Source : CNBC INDONESIA