QRIS Drives Indonesia’s Rapid Digital Economy Growth

How a single QR standard reshaped daily payments

Indonesia has turned a simple scan of a code into a national growth engine. Since Bank Indonesia introduced the Quick Response Code Indonesian Standard, known as QRIS, in 2019, cashless payments have moved from malls into wet markets, small kiosks, and taxis. Central bank leaders say the shift is helping expand financial access, speed up commerce, and push the country toward the top tier of fast growing digital economies. Government projections put Indonesia’s digital economy at around 90 billion dollars in 2024 with a path toward 400 billion dollars by 2030, driven by mass adoption of digital payments and the boom in online shopping.

QRIS brought order to a previously fragmented payment landscape. Before QRIS, merchants often needed several devices and agreements to accept different wallets or bank apps. With QRIS, one national code works across participating banks and ewallets, so a stall owner in Sulawesi or a cafe in Jakarta can display a single code and accept payments from almost any Indonesian bank or wallet app. The result is broad network effects. Consumers can pay anywhere using their preferred app. Merchants can accept everyone with one piece of paper or a small screen showing the code.

Alongside QRIS, Bank Indonesia rolled out BI FAST, a real time payment rail that keeps transfer fees low. BI FAST caps the transfer charge at Rp 2,500 and applies zero fees for small transactions under Rp 500,000, which helps everyday users move money quickly and cheaply. Together, the two systems have become the backbone of Indonesia’s day to day digital transactions.

What is QRIS and how it works

QRIS is Indonesia’s national QR code payment standard. It sets common rules for how banks and fintech firms generate, display, scan, and process QR codes. A merchant can print a static QR code once, or use a dynamic code that changes per transaction on a small screen. Any consumer app that follows the standard can scan and pay the merchant. The merchant’s bank or payment company receives the money and clears it across the network to the customer’s bank or wallet. Because the rules are uniform, participating apps and acquirers interoperate without extra hardware or special deals. That lowers cost and complexity for businesses of all sizes.

Standardization did more than simplify checkout. It shifted the burden away from merchants who previously needed to juggle terminals and fees. It also made it easier for central authorities to set technical and security requirements and to supervise the network. As more users and merchants join, the network becomes more useful. That positive loop has driven rapid adoption across Indonesia’s islands and diverse cities.

Why a unified standard changes behavior

Payments work best when everyone can connect. A taxi driver does not need four devices. A shopper does not need to ask which wallet the store accepts. QRIS compresses that friction. With one national code, both sides meet in the middle. For micro and small businesses, that is the difference between saying yes to cashless sales or staying cash only. For consumers, it is the difference between sometimes using digital payments and using them every day.

Adoption at scale, from malls to street vendors

QRIS adoption has surged since launch. Industry data show triple digit annual growth throughout 2024 as usage spread beyond major chains to small sellers. By mid 2024, users reached more than 50 million and merchants more than 30 million. By mid 2025, Bank Indonesia data pointed to over 57 million users and tens of millions of merchants, the vast majority of whom are micro, small, and medium enterprises. The acceleration reflects how low cost, phone based acceptance fits the reality of Indonesia’s retail economy, where small traders and informal vendors dominate.

Transaction growth has been swift as well. QRIS payments exceeded one billion transactions by March 2025. In the first half of 2025, Bank Indonesia recorded QRIS transaction value of roughly Rp 317 trillion, an annual rise of more than 120 percent. The network effect is clear. Each additional merchant makes QRIS more valuable to users. Each new user makes it more attractive to merchants.

Young Indonesians have been especially influential in normalizing the habit of scanning to pay. Vice President Gibran Rakabuming Raka praised Generation Z for adopting QRIS quickly and for helping spread usage from big stores to small traders. Their comfort with mobile apps, low tolerance for queueing, and preference for convenience have multiplied acceptance across cities and towns.

Bank Indonesia’s governor has tied this shift to broader gains in the economy. Before a packed audience at a national digital economy forum, Governor Perry Warjiyo stressed the pace of growth in both digital payments and the wider economy supported by them.

“Indonesia is now one of the fastest growing digital economies and payment systems in the world,” said Bank Indonesia Governor Perry Warjiyo.

What QRIS means for MSMEs and financial inclusion

For micro and small businesses, QRIS lowers the barrier to accepting digital money. A small warung can take phone payments without renting a card terminal or signing multiple contracts. A fish seller can place a printed QR on the table and close sales quickly. That matters in a country where a large share of businesses are tiny and margins are tight.

Digital acceptance also leaves a trail of sales data. Over time, that can help merchants access formal credit because lenders can analyze cash flow patterns rather than rely on collateral. For small producers and sellers, the ability to accept QRIS payment from locals and tourists expands their reachable market. Industry groups and the central bank credit QRIS with helping micro and small businesses reach new customers and with boosting local tourism by making on the spot payments easy for visitors.

Financial inclusion depends on habit, trust, and convenience. QRIS improves all three. Paying with a phone becomes normal if every stall accepts it. Trust rises when transactions work reliably and the system handles refunds and disputes. Convenience improves when QRIS is available at the park, the toll gate, the bus stop, and the neighborhood grocer.

Cross border use and regional integration

Indonesia has pushed QRIS beyond its borders to support travelers, small traders, and regional commerce. Indonesians can already scan their usual app to pay in partner countries like Malaysia, Thailand, and Singapore, and visitors from those countries can pay in Indonesia by scanning a QRIS code with their home apps. The model reduces currency friction for small purchases and helps local currency settlement between central banks. For destinations like Batam and Bali, where tourists visit in large numbers, cross border QR payments reduce reliance on cash and cards.

Bank Indonesia has started to connect QRIS to more markets. Trials with payment partners in China are underway. Japan launched a phase that lets Indonesian apps scan a compatible Japanese QR to pay at selected merchants, with plans to widen acceptance. Officials have signaled that India and Saudi Arabia are also on the roadmap for interconnection as infrastructure and agreements mature.

Governor Perry Warjiyo has framed the standard as a strategic asset in an open yet nationally directed system. He has said QRIS reflects national control over core payment rails as Indonesia connects to neighbors and key partners.

“QRIS symbolizes the sovereignty of Indonesia’s payment system,” said Governor Perry Warjiyo, highlighting the country’s competence in expanding interoperability across borders.

Some foreign companies have questioned whether Indonesia’s approach tilts the playing field. Policymakers respond that the standard is open to participants who align with national rules and consumer protection, and that the aim is inclusion, affordability, and fair access for domestic and international players. The steady expansion of cross border links shows Indonesia’s intent to connect, while preserving guardrails that support its own economy and small businesses.

Security, trust, and rules of the game

As usage grows, so do risks. Regulators and industry leaders have warned that payments and banking digitalization must be matched with stronger safeguards. The Financial Services Authority, known as OJK, has urged banks to build up defenses, invest in cybersecurity, and improve consumer protection frameworks. That means better authentication, monitoring for suspicious patterns, rapid incident response, and coordinated education against scams.

Indarto Budiwitono, OJK deputy commissioner for private bank supervision, framed the issue as both technical and reputational for banks and payment providers.

“Cyber resilience is not only about system defense but also bank reputations and business continuity,” said Indarto Budiwitono.

Industry associations have called for three parallel moves. First, risk based regulation and supervision that keep innovation safe. Second, responsible use of advanced tools like artificial intelligence and open finance under strong governance. Third, large scale public education that explains how to avoid phishing and fraud across platforms.

The role of AI in defense and attack is growing. The National Cyber and Encryption Agency has warned that criminals now use personal data to craft tailored phishing and shape shifting malware. The agency’s director for finance, trade, and tourism cybersecurity, Edit Prima, said the sector must meet that risk with the same tools.

“We must be ready for AI-based attacks and know how to face them. There is no other way but to also use AI,” said Edit Prima.

Indonesia’s Personal Data Protection Law and related rules are tightening compliance. Cross border data transfers face restrictions unless destination countries meet local standards. Companies must invest in security and data management if they want to serve a growing digital customer base and comply with both national and regional requirements.

New features and everyday services

QRIS keeps adding features that bring it into daily routines. Bank Indonesia launched QRIS Tap In and Out for public transport in the Greater Jakarta area, covering the MRT, the commuter line, TransJakarta buses, and both Jakarta LRT lines. Instead of scanning a static code, riders tap a phone near a reader using near field communication, then tap again when leaving. The approach makes entry and exit quick while keeping payment inside the QRIS framework.

Other features broaden where and how people use the network. QRIS Antarnegara enables cross border payments in partner markets. QRIS TUNTAS extends functions beyond store payments and can support cash withdrawal, transfers, and deposits at participating agents. As the share of transactions that cross between different providers grows, national switching systems and settlement rails like BI FAST carry a larger load. Regulators have adjusted merchant discount rates and technical standards to keep costs manageable for small sellers, while preserving reliability as volumes climb.

Where growth could stall without fixes

The map of QRIS acceptance is still uneven. Java leads, while merchant density in eastern provinces lags. That mirrors economic disparities, gaps in connectivity, and differences in digital literacy. Reaching remote areas means improving internet access, lowering the cost of phones and data, and tailoring education to small merchants who may be new to digital finance.

Fees and chargebacks can be a worry for tiny traders. While the QRIS model is cheaper than card terminals, cost allocation across issuers, acquirers, and switches needs constant tuning so that very small businesses do not carry a disproportionate burden. Regulators have been active on this front, but growth at scale will keep pressure on cost and uptime.

Regulation also matters. Businesses face evolving rules on privacy, data storage, and cybersecurity. Decentralized governance means some rules vary by region, which can create complexity for firms operating nationwide. Clarity on standards and consistent enforcement will help sustain investor confidence and service quality.

How Indonesia compares with India and China

India’s UPI and Indonesia’s QRIS share a regulator led approach and a focus on open standards that any compliant player can join. Both seek broad interoperability and low fees to drive mass use. In China, QR payments took off through private super apps, and only later did regulators push for more interoperability across platforms. Indonesia sits closer to the India model. It set a national standard early, invited banks and fintechs to plug in, and paired the front end QR standard with a fast, low cost transfer rail.

The three paths reflect different starting points and policy choices. Indonesia’s approach prioritizes inclusion and network effects for small merchants while keeping room for global partnerships. The rapid growth of users and merchants, the steady spread into transport and tourism, and the push to connect with neighbors and major markets suggest the model can scale while staying open to cooperation.

The Bottom Line

• QRIS unified QR payments nationwide in 2019, letting one code work across banks and wallets and cutting costs for small merchants.
• Digital payments and ecommerce are driving Indonesia’s fast growing digital economy, estimated at 90 billion dollars in 2024 with a target of 400 billion dollars by 2030.
• By mid 2025, more than 57 million users and tens of millions of merchants were on QRIS, with the vast majority of merchants classified as MSMEs.
• QRIS transactions crossed one billion by March 2025, and value in the first half of 2025 reached around Rp 317 trillion, up more than 120 percent year over year.
• Cross border links now include Malaysia, Thailand, and Singapore, with Japan live in a first phase, trials with China underway, and plans to connect with India and Saudi Arabia.
• BI FAST enables low cost, real time transfers, complementing QRIS and helping keep consumer fees low, including zero fees for small transfers.
• Security is a top priority as usage scales, with OJK urging stronger defenses and agencies highlighting the need for AI powered protection against advanced scams.
• New features like QRIS Tap In and Out for transit and QRIS TUNTAS for cash and transfer services are bringing the standard into everyday life.
• Key challenges include uneven regional adoption, merchant cost pressure, and regulatory complexity on data protection and cybersecurity.