Retail Payment Systems in Indonesia. Ida Nuryanti

Transcription

1 Retail Payment Systems in Indonesia Ida Nuryanti Turkey, October 2015

2 Outline I. Introduction II. BI - Regulations 1. Payment Systems in Indonesia 2. Policy Direction for Retail Payment System 3. Driving Factors of Growth in Retail Payment Systems Retail Payment Systems Regulatories in Indonesia III. Future Challenges 1. Technology Innovation and Development 2. Fraud Trends in Retail Payment System

3 I INTRODUCTION 1.1. Payment Systems in Indonesia 1.2. Policy Direction for Retail Payment Systems 1.3. Driving Factors of Growth in Retail Payment Systems

4 1.1. Payment Systems in Indonesia 4

5 1.2. Policy Direction for Retail Payment Systems Bank Indonesia has completed and measured several steps to increase retail payment transactions with attention on the national interests and consumer protection. Objecti ves Strateg ies Challeng es Safe, efficient and reliably payment system with attention on consumer protection. Payment system electronification expansion through the use of telecommunication device by the community, including remote areas. Electronic Bill Presentments and Payment (EBPP) development to support and facilitate bulk settlements processing. Financial inclusion access through Digital Financial Services. Improving interoperability/interconnection of e-money and card payments Socialization and education programs of retail payment Retail payments that have not been optimized in e-money systems industry Limited interoperability / interconnection of e-money and card payments Disintegrated billing payment system Limited access of financial inclusion, considering Indonesia as an archipelagic country which has more than 17,000 islands and a population of more than 200 million people Society s lack of understanding and knowledge 5

6 1.3. Driving Factors of Growth in Retail Payment Systems The driving factors of global growth in retail payments are: Demand-side: Provide certainty and support through the issuance of policy and regulation, as well as to work in partnership with private sectors, where it needs to. Supply-side: Healthy competition between institutions across various industries to create innovation of payment services 6

7 1.3. Driving Factors of Growth in Retail Payment Systems Practical Carry less cash and hygienic Broader Access Expand the society s access to payment system Transparency and Security Supporting prevention and criminal identification Safe, efficient and reliably payment systems with attention on consumer protection Rupiah Efficiency Velocity of Money Accurate and Targeted Economy Planning Reducing handling cost bank notes and cash handling Increasing the money in circulation Comprehensive and completed transactions record to achieve a targeted plan 7

8 II BI - Regulations Retail Payment Systems Regulatories in Indonesia

9 Retail Payment Systems Regulatories in Indonesia Bank Indonesia Regulations and Circular Letters, includes: Card-based Payments Electronic Money (E-Money) Fund Transfer Anti-Money Laundering and Counter Terrorist Financing Payment System Regulations aspects include: 1. Operator 2. Cooperating Parties 3. Approval or Permits 4. Risk Management 5. Information Technology Security 6. Prudence Principles 7. Standardization 8. Consumer Protection 9. Reports 10. Oversight Regulated Parties: 1. Principals 2. Issuers 3. Acquirers 4. Clearing Providers 5. Settlement Providers 6. Fund Transfer Providers 9

10 III Challenges 3.1. Fraud Trends in Payment Systems

11 3.1. Fraud Trends in Payment System Various risks on electronic retail transactions include : malware and phishing through internet banking Malware (Malicious software) Phishing Risk Detection A software specifically designed to gain access to customer s internet banking or damage a computer without the knowledge of the owner Access can be done through spyware, viruses, worms, etc. Risk Detection A malicious attempt for acquiring customer s data including passwords, usernames, security codes, details of credit cards Cyber criminals pretending to be Bank s official sites. Risk Mitigation Use the latest anti-virus software and keep patches up to date Use an automatic tool to check suspicious activity or contact bank s call center Access personal s internet banking wisely in secured browser Risk Mitigation Ensure the URL are secured (https) and in accordance with the Bank s official sites. Access personal s internet banking wisely in secured browser 11

12 THANK YOU