Bank Indonesia (BI) has just launched the Standardization of Payment Open API (SNAP) to coincide with the 76th Indonesian Independence Day. SNAP BI comes as one of the key initiatives of the Indonesian Payment System Blueprint (BSPI) 2025 vision, which aims to establish a competitive, reliable, safe and sound digital payment ecosystem. The question then arises what is the use of SNAP and the benefits of Bank Indonesia SNAP as a standard for payment system governance.

The benefits of Bank Indonesia SNAP are not only for businesses but also for customers. Its users vary from payment service providers (PJP), banks, non-PJP, merchants which include MSMEs to individual customers. This standardization is important to protect consumers, customers, and providers from the possibility of cybercrime and fraud. For this reason, Bank Indonesia is also aggressively socializing SNAP to neighboring countries.

Uses and Benefits of Bank Indonesia SNAP

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Bank Indonesia's SNAP is a nationally applicable standard, regulating the implementation of payment Open APIs to improve access and digital payment services in Indonesia. The goal is to create technical standards for all payment API developers and service providers, including governance, customer data protection, data formats, security standards, and so on.

The benefits of Bank Indonesia SNAP are not only for bank customers but also business actors, namely to encourage integration, interconnection, and interoperability between banks, payment service providers (PJP), and non-PJP.

The usefulness of SNAP itself is divided into 5, which are as follows.

1. Language Standardization

Previously, digital payment applications had different languages. The presence of SNAP is intended to build language standardization in Indonesian banking. By standardizing using the same language, namely Indonesian, it is expected that more banks will join because there are no more language differences between one bank and another.

It is also intended to create interoperability that results in a healthy and integrated payment industry.

2. Efficiency & Interlinkage

BI released SNAP to support visions 2 and 3 of the Indonesian Payment System Blueprint 2025. One of the main objectives is efficiency in the implementation of the payment system.

That way, innovation and competition to improve customer satisfaction can continue to grow and bring good results. The presence of SNAP makes it easier for customers to send funds and make transactions, especially making direct digital payments.

SNAP regulations encourage interlinks between non-banks and bank payment service providers (PJPs). In fact, non PJPs can work with banks. Business actors and related parties can access data in just one door.

Interlinkage also initiates future digital transactions. This will enable financial transactions to be made using a single Open API standard. From here, payments can be made through various local and international banks.

3. Governance & Security Enhancements

SNAP is here to improve security requirements for providers and operators of payment Open API services. SNAP users also participate in regular monitoring to fulfill good governance principles.

Before releasing the payment Open API service cooperation, related parties need to fulfill the governance and risk management principles first. Governance includes the planning, implementation and measurement process up to the design of the Open API.

In addition, in terms of risk management, there is an internal control system, active supervision of the management, and policies and procedures for the use of payment Open API services.

The governance arrangements also follow the applicable legislation. The scope of the governance itself includes transaction data as well as other data including the profile of the payment Open API party and the underlying payment data.

4. Consumer Protection

Consumers have the potential to be vulnerable parties in a business transaction.

Consumer protection is needed not only to protect consumer interests, but also to increase public confidence in using payment service systems that are primarily API-based.

Consumer protection focuses on two things, namely the protection of consumer data and the acceptance of consumer complaints. The consumer data in question is profile data and other consumer data that is identified and can be identified and combined with other information either directly or indirectly through electronic and non-electronic systems.

In the implementation of data protection, consumers are entitled to receive education to increase literacy regarding their rights as data owners. Customers get clear information regarding the benefits, costs, and risks of the payment Open API. There is also a data protection mechanism including how to protect data, handle data leakage, and consent, revocation, and deletion of data.

Data handling is also in line with current legislation. When a data leak occurs, the service provider and PJP are required to notify in writing to:

  • Affected consumers
  • The competent authority
  • Parties that cooperate in the payment Open API service

This written notification includes what data was leaked, how and when the data was exposed, as well as the efforts that have been made. These efforts include handling and recovering from data leaks.

5. Reducing Industry Fragmentation

The last is to reduce industry fragmentation or siloed industries and encourage the acceleration of the digital economy in Indonesia.

Banks have many important roles in the business world. Banks are part of finance accounting for various parties. It also acts as a service provider and data storage. Banking has access control to many parties and is part of CRM.

The SNAP regulation sets the standardization stages that industry players need to follow. Particularly in implementing developer testing to understand compliance with SNAP standards.

Industry players also need to conduct functional testing until the verification stage whether the standards are the same as SNAP, such as BRI as one of the service providers who is adjusting SNAP BI for BRIAPI services.

Not only that, PJP partners who have integrated with BRIAPI are also required to apply SNAP to the Payment Open API which has been adjusted to PADG SNAP.

 

Read also: In Collaboration with BRIAPI, Xendit Presents the Best Digital Payment Service

 

BRIAPI Open Banking Migration to SNAP BI

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Since the beginning, BRI has followed BI's vision and mission including BSPI 2025. This is realized from BRIAPI services as a pioneer of open banking in Indonesia. BRIAPI products have enabled third parties such as e-commerce to integrate their services using applications.

BRIAPI also collaborates with fintech and Indonesian startups. BRIAPI itself has been certified with the ISO 27001 international standard since 2019. 

One form of BRIAPI's migration from open banking to SNAP BI is the BRIVA service.

BRIVA service in the form of a virtual account is a virtual bank account in the form of a number of ID numbers that will be used to make payments. The ID number is created by the selected bank and in each transaction, each customer will get a different ID number. Likewise, different transactions will get different numbers.

In addition, BRIAPI has also collaborated with one of the fintech applications, Xendit. Xendit allows customers to make payments through various channels. The BRIAPI product integration process will appear on the Xendit business dashboard. There are many more examples of BRIAPI collaboration, apart from fintech, which also works with educational institutions and others.

 

Read also: See How BRIAPI Open Banking Tech Accelerates Business Growth in Indonesia

 

Closing

The benefits of Bank Indonesia SNAP are divided into two, namely for businesses and customers. For businesses, SNAP is present to increase efficiency and interlinkage between merchants and payment service providers.

For customers, the existence of SNAP helps provide protection to consumers including their personal data. SNAP regulates how consumer complaints are handled until data leakage occurs.

SNAP itself has governance guidelines that include payment system representatives in its preparation. That way, this standardization can be useful for monitoring and improving financial services.

What SNAP does is not only about data protection. SNAP compiled by Bank Indonesia is also useful for improving the digital financial ecosystem that refers to the upcoming BSPI 2025 vision.

Streamline and simplify public payments by using SNAP. Check the procedures for registering BRIAPI and SNAP BI on our website page.