Collaborating with Alipay, Bank Mandiri Apply for "Cross Border E-Wallet" Permit to Bank Indonesia

Bank Mandiri is known to be applying for a permit as a cross-border electronic wallet operator (cross-border e-wallet) to Bank Indonesia. His party collaborated with Alipay, which is called the Chinese digital financial giant Ant Financial.

"For Alipay, it's still in talks, later we will become a acquirer, while Alipay will be issue. We are currently also applying for a permit cross-border e-wallet to Bank Indonesia," said Bank Mandiri SEVP Consumer and Transaction Jasmin as quoted from Cash.

According to Jasmin, this collaboration with Alipay is a form of implementation of the Regulation of Members of the Board of Governors of Bank Indonesia Number 21/18/PADG/2019 concerning the Implementation of the Quick Response Indonesia Standard (QRIS) National Standard.

In addition, this cooperation is in accordance with the Bank Indonesia Regulation concerning Payment System Service Providers which requires each principal to cooperate with a Commercial Bank for Business Activities (BUKU) 4 or a bank with a minimum core capital of Rp30 trillion.

In this regulation, BI requires foreign principals to place funds float a minimum of 30 percent in the form of cash or demand deposits in BUKU 4 and a maximum of 70 percent of funds floating on financial instruments issued by the government.

The large flow of tourist arrivals from China is the reason why Alipay and WeChat Pay are keen to present their services in Indonesia. At the end of 2018, the visit of travelers from Bamboo Curtain to Indonesia was recorded to have increased 275 percent in the last five years. No wonder the Minister of Tourism Arief Yahya targets this year to attract 3,5 million Chinese tourists. Bank Mandiri confirmed that this collaboration was aimed at facilitating tourist transactions.

"That's right, one of them is for tourists," said Mandiri Corporate Secretary Rohan Hafas Dailysocial.

Chinese fintech giants, Alipay and WeChat Pay, are known to have been eyeing cooperation with big banks in Indonesia. since the end of last year. CIMB Niaga itself is also known to have apply for a partner permit with Alipay earlier this year.