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Uncovering the Challenges of Digitizing QRIS in Micro and Small Business: Is Sustainability at Stake?

source: canva.com

The advancement of digital payment transactions through QRIS represents a significant innovation in the realm of shopping. This modern technology allows us to conveniently make purchases without the need for cash or an ATM/credit card. With the help of our cell phones, we can effortlessly shop at various merchants that offer QRIS as a payment option, which is currently abundant in number.

Nonetheless, there are instances where merchants cease accepting payments through QRIS, particularly those that belong to the micro and small enterprise sectors. For instance, the soto stall near my residence previously accepted QRIS payments. However, within the past year, they have reverted to preferring cash transactions, and the QRIS sticker has been concealed. This occurrence is also prevalent in numerous merchants located in traditional markets that were initially digitized by the government and fintech.

One of the issues is due to the fact that settlement of QRIS transactions is not executed in real time. It is a common practice for the settlement to take place on D+1. Hence, the merchant will receive the payment settlement on a succeeding day. In contrast, most merchants in traditional markets rotate their capital daily. Therefore, it becomes crucial for them to receive the results of their trades on the same day to use them as capital the following day.

This issue is undoubtedly a challenging matter to resolve, given the number of parties involved in payment processing, which is an inherent characteristic of an interoperable payment system. Although I am not a technical expert, it appears that a same-day settlement for QRIS payment processing is feasible if all parties involved agree on the technical aspects and implement adequate risk management measures.

As the regulatory body, Bank Indonesia can adopt a proactive approach to tackle this issue, thereby enabling QRIS merchants, especially those in the micro and small enterprise sectors, to benefit from same-day settlement. Such efforts in payment settlement can support the growth of QRIS transactions in the aforementioned sector of Indonesia’s economy, thereby enhancing the sustainability of QRIS payment methods for micro and small businesses.

Published in Blog financial inclusion

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