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Jakarta Post

WeChat Pay now legal in Indonesia, says BI

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, January 16, 2020   /   07:50 pm
WeChat Pay now legal in Indonesia, says BI A WeChat Pay sign (‘left’) stands on display at a shop in Singapore on May 22, 2018. (REUTERS/-)

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)