When the pandemic hits in 2020, people’s ways of doing things changed drastically. We wear masks, hold Zoom meetings, and spray an unholy amount of hand sanitizer. When the virus spread gets worse, physical touch becomes a no-go. Awkward elbow bumps have become an alternative to handshakes, and digital payments that offer contact-free transactions become the norm in Southeast Asia and beyond. 

 

An Innovation Just Before the Pandemic: QRIS

Other than interbank transfers and e-wallets, Bank Indonesia introduced Quick Response Indonesia Standard (QRIS), a standardized QR code in May 2019. By scanning one QR code, people can send and receive money from all payment applications on mobile phones, including e-wallets and bank savings. Since then, QRIS transactions nominally increased by 322.5 percent on an annual basis in the first semester of 2022, and volume increased by 194.4 percent on an annual basis. This shows how Indonesians are already accustomed to using QRIS for almost everyday transactions; from grocery shopping, eating out, or even sending wedding gifts. 

 

During the early pandemic, people joked about how religious institutions will finally use QRIS to receive offering money. That won’t be happening… right? Wrong. Churches and Mosques in big cities are forced to adapt to technological advancements, especially when services cannot be held face-to-face during critical times of the pandemic. A church representative in West Jakarta shared how things have shifted in the past few years: “Because of the COVID-19 pandemic, we are directing the devotees to make offerings digitally. So far, around 80% of the offering money we receive comes from bank transfers and QRIS scans.” This is a big change because prior to the pandemic, most offerings were received in cash.

 

Transaction using QRIS | Courtesy of mediaasuransinews.co.id

 

After all, it seems like more people are getting comfortable with using digital payments after using it for quite some time. Besides being practical, not having to bring cash around is also safer as it lowers the risk of robbery and fraud. “The stickiness of digital payments cannot be underestimated, as three-quarters of respondents indicated a preference to continue paying digitally instead of going back to cash, even when the pandemic has subsided,” Chavi Jafa, Visa’s Head of Business Solutions for Asia Pacific, previously told Tech Wire Asia.

 

A must, even for Small Merchants

The rapid advancement of a cashless society might be overwhelming for some people, especially those who are not familiar with technology. On the other hand, going digital is inevitable; it’s becoming a must even for small businesses. As a solution to this need, the Indonesian government did periodic socialization about QRIS, as well as piloting trials in public markets and shopping centers in 34 provinces throughout Indonesia to make sure that no one is left behind. As of December 2022, QRIS is estimated to have reached 30 million users and is aimed to reach 45 million users in 2023. "We want to accelerate payment digitalization, but of course, we don't want to leave the lower classes of society, especially MSMEs and traditional market traders," BI Communications Department Director Erwin Haryono told Katadata.co.id.

 

For people who regularly do grocery shopping, having QRIS as a payment alternative is helpful. As a mom with three kids, Ana does weekly grocery shopping in a traditional market. “QRIS makes transactions easier because I can pay the exact amount. No need to wait for the seller to hand me the change money. It’s more hygienic as well because cash in the market is usually wet or crumpled. On the other hand, I still use cash when it’s hard to reach my phone or when the internet signal is bad,” said Ana.

 

Unexpected Ways of Digital Payment Innovation

Bank Indonesia’s Head Representative, Arlyana Abubakar stated that Bank Indonesia has coordinated with various parties to make sure that digitization could be implemented smoothly to make transactions easy and safe. "In the future, we will do it starting from parking payments, taxes, health, education, buskers, to starling (street vendors)," said Arlyana during the socialization of QRIS at Taman Anggrek Mall, West Jakarta on March 1st, 2023.

 

Arlyana Abubakar, Bank Indonesia’s Head Representative

 

Funnily enough, Indonesian netizens have shared their experience of finding buskers that accepted QRIS. People used to make excuses to buskers like “I don’t have any spare change” and “Didn’t have my wallet on me, sorry”. But those excuses are now invalid because even buskers accept digital payments.

 

Buskers with QRIS | Courtesy of lookatcherokee on TikTok

 

One of the reasons why people convert easily to using QRIS is because it is directly centralized to their personal bank accounts. This makes one's financial management neater and more traceable, especially when supported with advanced banking features. Take OCTO Mobile by CIMB Niaga for instance, among all banks and e-wallets, they offer an advanced way of QRIS payment in Indonesia and Thailand. Users could make payments using various sources of funds: regular savings or Rekening Ponsel. Indonesian users can also pay using Poin Xtra and even credit cards! These could come in handy considering how much people use QRIS payments daily. With just a few steps, you can pay for your shopping order in a few seconds:

1. Log in to OCTO Mobile by CIMB Niaga

2. Select the QR menu, then select the scan button

3. Scan QRIS (can also be used for mutual transfer among CIMB Niaga customers

4. Enter the nominal amount and select the registered source of funds (savings or credit card)

5. Confirm and you're done!

 

OCTO Mobile by CIMB Niaga

 

In the future, QRIS payments will be integrated internationally as the development of cross-border QRIS is already ongoing. Several merchants in Thailand have accepted QRIS payments, and it will soon be available in Malaysia, Singapore, the Philippines, and even Japan. Imagine how handy it would be if we no longer need to deal with currency differences when traveling abroad. 

 

Has the era of cash finally passed?