Artajasa has struck a deal with e-payment and security solutions provider PT Infinitium Solutions, a subsidiary of Malaysia’s Infinitium, to offer a domestic authentication platform called B-Secure, which allows debit card holders to make secure transactions online.

Of the 13 companies in the partnership, eight are debit card-issuing banks under the ATM Bersama network, namely state-owned Bank Negara Indonesia (BNI), Bank Syariah Bukopin, Bank Syariah Mandiri, Bank Tabungan Negara, Bank OCBC NISP, Bank DBS, Bank Bukopin and Bank Papua.

Moreover, the payment gateway partners include Doku and Faspay, while three pilot merchant partners are Mimopay, Rumah Zakat and Padiciti.

B-Secure is compatible with 94 banks and non-bank institutions and could potentially reach more than 107 million cardholders in Indonesia.

“What we are trying to create is a secure and efficient digital payment ecosystem,” Artajasa CEO Bayu Hanantasena said recently in Jakarta.

B-Secure promises secure payments for national payment gateway (GPN) cardholders by implementing one-time password (OTP) authentication. Such an authentication system is a crucial component in transaction security to prevent fraud.

“Cardholders with existing GPN accounts do not need to open a separate account or transfer funds into a separate wallet; instead, they will now be able to use their GPN card online once the issuer banks embark on B-Secure,” said Ho Ching Wee, CEO of Infinitium Group.

BNI, one of the issuer banks, said the collaboration would help the lender boost fee-based income from its 22 million debit card users.

“This is an important move, since we know that online transactions keep increasing, while many Indonesian people still do not own credit cards,” Donny Bima Herjuno, BNI’s vice president, said.

For Artajasa, this is just the beginning, as it hopes other banks and merchants will join the B-Secure platform.

Rivan A. Purwantono, consumer director of Bank Bukopin, said the lender believed the collaboration with Artajasa was a good decision because it could increase the security of transactions for customers.

“Payments using debit cards have to be secured, because the possibility of fraud is high. We need a partner, and we think Artajasa, with its ATM Bersama network, is the right partner,” he said.

Indonesia, a country of more than 260 million people, has a high number of smartphone users. Many of them frequently shop online, but most of the transactions are still made using credit cards or ATM transfers.

While payment systems are evolving fast driven by technological innovation, BI admits it is late in creating rules for the online payment industry.

BI electronification and GPN executive director Pungky Purnomo Wibowo said a regulation on the matter would be issued soon.

“We are still in the process of finalizing the regulation, so I can’t disclose the details. The point is, we support online payment transactions through e-commerce platforms,” he said.

Pungky added that the regulator appreciated the launch of the domestic authentication platform B-Secure but stressed that it should comply with the regulation to be issued in the near future.

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