Indonesia and China Launch Cross-Border QR Payment Trial: A New Era for Digital Transactions in Asia

Indonesia and China Launch Cross-Border QR Payment Trial

Indonesia and China have officially begun a groundbreaking trial to interconnect their QR code-based payment systems, marking a significant milestone in Asia’s digital finance landscape. The initiative, launched on Indonesia’s 80th Independence Day, aims to link Indonesia’s Quick Response Indonesian Standard (QRIS) with China’s vast digital payment ecosystem, promising to reshape cross-border transactions, boost tourism, and empower small businesses across both nations.

What Is Cross-Border QR Payment and Why Does It Matter?

QR (Quick Response) code payments allow users to make transactions by scanning a code with their smartphone, instantly transferring funds between accounts. In China, QR payments are ubiquitous, with nearly 96% of mobile users relying on them for everything from street food to luxury goods. Indonesia’s QRIS, launched in 2019, has rapidly become the country’s dominant digital payment method, with over 57 million users and 29 million registered merchants as of 2025, most of them small and medium-sized enterprises (SMEs).

Cross-border QR payment systems take this convenience international. By linking QRIS with China’s UnionPay and other payment networks, travelers and businesses can pay or receive money directly from their home bank accounts in local currency, bypassing the need for cash or international credit cards. This not only streamlines transactions but also offers better exchange rates and lower fees compared to traditional payment methods.

How the Indonesia-China QR Payment Trial Works

The pilot phase involves Indonesia’s Payment System Association (ASPI), China’s UnionPay International, and several local payment service providers. Technical, business, and operational agreements have been finalized, with four Indonesian switching service providers signing on to jointly develop the system and conduct sandbox trials. The goal is seamless interoperability: Chinese visitors in Indonesia can pay using their familiar UnionPay-supported apps by scanning QRIS codes, while Indonesians in China can use their domestic apps to pay via Chinese QR codes.

Bank Indonesia Governor Perry Warjiyo emphasized the importance of this innovation, stating:

“QRIS innovation continues to evolve to expand acceptance and support digital economic and financial inclusion, with cross-border QRIS being one such innovation.”

Once the trial phase is completed and proven successful, the system will be officially launched, making cross-border QR payments between Indonesia and China widely available.

Economic Impact: Trade, Tourism, and SMEs

Linking Indonesia’s payment network with China is expected to bring substantial benefits:

• Smoother cross-border trade transactions: Businesses, especially SMEs, can settle payments instantly and securely, reducing reliance on cash and minimizing currency conversion hassles.
• Boosted tourism flows: Chinese tourists, who are accustomed to QR payments at home, will find it easier to spend in Indonesia, from major attractions to small local shops. This is crucial as Indonesia aims to attract up to 1.5 million Chinese tourists in 2024, following a record of over 2 million in 2019 before the pandemic.
• Empowerment of micro, small, and medium enterprises (MSMEs): QRIS adoption has already enabled millions of Indonesian MSMEs to accept digital payments. Cross-border capability opens new markets and customer bases, both for Indonesian sellers catering to Chinese tourists and for Indonesian travelers shopping abroad.

According to Indonesia’s Ministry of Tourism and Creative Economy, the expanded QR payment system is part of a broader strategy to increase the number of Chinese tourists, their length of stay, and overall spending. The ease of QR payments is expected to encourage more Chinese visitors to explore Indonesia’s diverse destinations, from Bali to Sumatra.

Regional Integration: ASEAN’s Digital Payment Revolution

The Indonesia-China QR payment trial is part of a larger movement sweeping across Southeast Asia. ASEAN (Association of Southeast Asian Nations) has prioritized digital payment connectivity as a pillar of regional economic integration. The 2023 ‘ASEAN Leaders’ Declaration on Advancing Regional Payment Connectivity and Promoting Local Currency Transactions’ set the stage for innovation-driven approaches, aiming to reduce reliance on external currencies like the US dollar and foster economic resilience.

Indonesia’s QRIS has already established cross-border links with Malaysia, Thailand, and Singapore. In these countries, QRIS users can pay directly at local merchants, and vice versa. For example, since August 2022, QRIS facilitated nearly 1 million transactions worth over Rp 437 billion ($27 million) in Thailand, and over 4 million transactions worth Rp 1.15 trillion ($71 million) in Malaysia. Japan joined the network in August 2025, with technical trials underway in India and South Korea.

Why Is ASEAN Focusing on QR Payments?

QR-based payments offer several advantages:

• Financial inclusion: They require only a smartphone and internet connection, making them accessible to the unbanked and underbanked populations.
• Support for MSMEs: Small businesses can accept digital payments without expensive point-of-sale equipment.
• Tourism and remittances: Travelers and migrant workers can make payments and send money across borders easily and securely.
• Local currency use: By enabling direct payments in local currencies, ASEAN countries reduce their dependence on the US dollar and gain greater control over their economic destiny.

According to a 2024 study by Data Reportal, China, Malaysia, and Thailand lead the world in QR code usage, with monthly rates above 60%. Indonesia is also a regional leader in e-wallet and QR payment adoption, with QRIS transactions reaching 98.5 trillion rupiah ($6.5 billion) in 2022 alone.

Technical and Regulatory Challenges

While the promise of cross-border QR payments is immense, several challenges remain:

• Regulatory harmonization: Countries must agree on standards for data privacy, consumer protection, cybersecurity, and electronic signatures to ensure consistency and interoperability.
• Digital infrastructure: Reliable internet connectivity and robust cybersecurity are essential, especially in rural areas.
• Consumer education: Users need to understand how to use QR payments safely and what to do in case of disputes or fraud.
• Merchant adoption: Expanding the network of merchants who accept cross-border QR payments is crucial for widespread usage.

ASEAN is addressing these issues through collaborative efforts, such as regional regulatory sandboxes and public–private investment funds for digital infrastructure. Financial literacy campaigns and strengthened consumer protection frameworks are also being developed to ensure safe and responsible use of digital payments.

Global Implications: Toward a Multipolar Digital Economy

The Indonesia-China QR payment partnership is more than just a technological upgrade—it signals a shift in the global financial landscape. By promoting local currency transactions and reducing reliance on the US dollar, ASEAN countries are asserting greater economic sovereignty. This could have far-reaching implications, potentially leading to a more multipolar world order where emerging economies play a larger role in shaping global economic governance.

For China, the partnership with Indonesia is part of a broader strategy to expand its digital payment influence across Southeast Asia and beyond. UnionPay International’s collaboration with Indonesia’s ASPI is just one example of how Chinese payment networks are seeking interoperability with regional partners.

For Indonesia, the move positions the country as a digital payment innovator and a key player in regional financial integration. President Joko Widodo has described the cross-border payment initiative as a first step into the global digital world, with ambitions to extend the system to more countries, including India, South Korea, and Saudi Arabia.

Real-World Impact: Stories from Travelers and Businesses

The benefits of cross-border QR payments are already being felt by travelers and businesses. For example, a Malaysian tourist in Jakarta recounted how he was able to pay at a convenience store using his e-wallet, despite running out of cash. Such experiences are becoming increasingly common as more merchants and consumers embrace digital payments.

Indonesian tour leaders report that the expanded QR payment system will streamline payments for clients traveling in China, eliminating the need to juggle multiple payment options or worry about international credit card acceptance. Outside major Chinese cities, international cards are often not accepted, making QR payments a vital alternative.

For Indonesian MSMEs, the ability to accept payments from foreign tourists using their preferred apps opens new revenue streams and reduces barriers to international trade. As the network of participating merchants grows, both inbound and outbound travelers will enjoy greater convenience and security.

What’s Next for Cross-Border QR Payments?

The Indonesia-China QR payment trial is expected to conclude with a full-scale launch, making seamless cross-border payments a reality for millions of users. Bank Indonesia is already planning further expansions, with technical trials set to begin in India and South Korea. The trend is clear: QR code payments are becoming the new normal for international transactions in Asia and beyond.

As more countries join the network and regulatory frameworks mature, the vision of a unified, interoperable digital payment ecosystem across Asia is coming into focus. This will not only benefit consumers and businesses but also strengthen regional economic integration and resilience in an increasingly uncertain global environment.

In Summary

• Indonesia and China have launched a trial to interconnect their QR code payment systems, aiming for seamless cross-border transactions.
• The initiative is expected to boost trade, tourism, and support for small businesses in both countries.
• QRIS, Indonesia’s dominant digital payment system, is already linked with Malaysia, Thailand, Singapore, and Japan, with further expansions planned.
• Cross-border QR payments offer convenience, lower fees, and financial inclusion, especially for travelers and MSMEs.
• ASEAN’s push for digital payment integration is reshaping regional economic ties and reducing reliance on external currencies.
• Technical, regulatory, and educational challenges remain, but collaborative efforts are underway to address them.
• The partnership signals a shift toward a more multipolar digital economy, with Asia at the forefront of payment innovation.