Bank Indonesia (BI) has officially granted China-based e-wallet heavyweight WeChat Pay a permit to operate in the country.

BI deputy governor Sugeng said the central bank granted the permit on Jan. 1.

“WeChat Pay is now legal [in the country],” he said on Saturday as quoted by kompas.com via Kontan.

Regulators agreed to grant the permit after WeChat Pay formed a partnership with private Bank CIMB Niaga. The bank will serve as an “acquirer” in charge of processing each transaction made through the foreign e-wallet platform.

WeChat Pay’s arrival to the country’s burgeoning cashless ecosystem coincided with the implementation of BI’s Quick Response Indonesia Standard (QRIS) code, a nationwide standard QR payment system. This will allow Indonesian customers to use WeChat Pay at merchants that support QRIS.

“[WeChat Pay] is already connected with QRIS,” Sugeng said.

Prior to receiving BI’s official permit, WeChat Pay had been operating illegally in the country as the e-wallet was the go-to cashless payment system for a number of Chinese visitors.

Alipay – another China-based e-wallet backed by technology giant Alibaba – has yet to be granted an operational permit from BI.

“No development on that front,” Sugeng said. (rfa)

Popular

Furniture exporters decry new quarantine rule

EV industry urges govt to reinstate two-wheeler subsidies as market slows

BRICS shows internal rifts as ministers fall short of joint statement