The development of the payment system in each country varies according to the economic and financial conditions of that country. By looking at the evolution of payment systems and how transactions are made in the economy, you can better understand how money functions and how it has taken shape over time.

Money has a long history until it finally entered the modern era as it is now. So, how is the development of the payment system in Indonesia?

Payment System Evolution in Indonesia

Payment by edc machine as evolution of payment system


Payment system evolution is the sequence of payment transaction system developments from time to time. The following is the development of the payment system in Indonesia:

1. Barter

Before using money, people used to use the barter system in their buying and selling process. Barter is a transaction system by exchanging goods.

This system can be said to be valid if both parties need each other with the value of the goods exchanged must also be the same.

2. Currency

Humans then began to invent money, one of the greatest discoveries in the evolution of payment systems. Money develops and evolves into (physical) currency which is produced, used in large quantities, and officially regulated by the central bank. Currency is a legal means of payment and is mandatory in the process of buying and selling transactions in the community.

In general, there are two types of currency, namely paper and metal. Paper money is a means of payment in the form of sheets of paper that have a certain stamp and have a nominal value and exchange rate. Meanwhile, coins are in the form of coins and the main material is aluminum.

3. Demand Deposits or Paper Based

Demand deposits are funds issued by commercial banks in the form of checks, demand deposits, debit or credit notes. In the process of its development, various countries have made extensive use of demand deposit transactions. For one thing, the giver and recipient of funds want a tangible exchange just as cash is more flexible.

As for the settlement of transaction processes through checks and other giral payment systems through clearing institutions by Bank Indonesia (BI) or commercial banks that obtain permission directly from BI.

4. Electronic Money or Card Based

Currently, Indonesian people are familiar with various types of payment cards. Credit cards, debit cards, and electronic money (e-money) are cards issued by financial institutions such as banks that can be used to make payments or cash withdrawals. You can use the card to shop at certain locations, such as supermarkets, restaurants, hotels, and so on.

5. Platforms

The next payment system evolution is platform-based, which is currently the most massively worked on by the financial and banking industry. Platform-based transactions provide great opportunities for financial and banking services to expand their wings in digitalization. These payment systems include mobile banking, internet banking, and e-wallets.

Going deeper, now fintech startup companies are not only developing platforms to offer their main service products, for example tickets for online travel agents, goods for e-commerce, or ride-hailing services. But it has shifted to offering multi-line products including financial services. So, now consumers and customers do not only make transactions or get financial services only from banks, but from the various platforms or applications above.

mobile banking as an evolution of payment systems

For this reason, the presence of open banking services such as BRIAPI is very important to increase collaboration. Through BRIAPI, BRI can integrate banking services into various platforms, supporting the establishment of a platform payment system. Hyper-collaboration is the key for banks to be connected and form a collaborative and integrated ecosystem.

In addition, the trend of evolution of the payment system at the current digital challenger bank has also been directed to provide value to customers through the platform. For example, Revolut from the UK or N26 from Germany which integrates grocery stores/marketplaces with the financial services offered. In Asia, there are many super-apps such as Alipay and WeChat, which are able to offer more than just marketplace banking, but also integrate access to various financial products and services in one digital ecosystem.

6. Virtual Currency

Recently, there have been several popular virtual currencies which are usually used as virtual means of payment. Virtual Currency can be in the form of an account to save money virtually and then can be transacted via the internet without regional or country boundaries. For example, doing online stock trading, forex activities, or shopping abroad. There are types of virtual currencies such as Bitcoin, Ethereum, Stellar, and so on.

The payment system is still producing new innovations to make it easier for people to transact and do business. Referring to Bank Indonesia's explanation, technological innovation & business models, community traditions, and authority policies are the 3 elements driving the evolution of this transaction system.

One form of Bank Indonesia's support to encourage and facilitate the evolution of the payment system is the Indonesian Payment System Blueprint or BSPI 2025. The BSPI is structured to serve as a policy direction for Bank Indonesia's payment system to navigate the role of the payment system industry in the digital economy and finance era which will be achieved in 2025 .

BSPI which contains five Visions of Indonesia's Payment System 2025 consisting of open banking, retail payment systems, large value payment systems and financial market infrastructure, data and digitization, as well as regulatory reform, licensing and supervision.

This support from BSPI 2025 is also one of the government's efforts to prevent an economic downturn, restore the financial business to the payment system. It is hoped that with this digital economic transformation, there will be no more difficulties in the payment system from any party.

Also read: Grab Digital Transaction Opportunities with Open API BRIAPI


The Role of BRIAPI in the Evolution of the Indonesian Payment System

electronic payment with an edc machine

As discussed above, you can see that the evolution of the payment system continues from time to time. Currently, more people are turning to digital payment instruments because they are flexible and fast in the transaction process.

As the central bank, the role of Bank Indonesia in the payment system is to regulate and maintain the smooth operation of the payment system. In addition, Bank Indonesia is also responsible for continuously improving and developing payment systems in digital form.

Therefore, a company certainly needs facilities that are able to offer easy and practical digital payment systems to customers, as well as adapt to the evolution of payment systems. BRIAPI is here to facilitate the implementation of digital payment systems from various applications.

BRIAPI itself is the first Open API platform in Indonesia standardized by Bank Indonesia. With this, BRIAPI also participates in developing the digital ecosystem.

Following are some of BRIAPI's roles in the evolution of the payment system in Indonesia.

1. Facilitating Various Types of Digital Transactions

Banks and financial institutions play an important role in contributing to economic development. Not only that, both of them also provide access to financing for economic actors.

As technology develops, the technology-based financial sector (fintech) is growing. BRIAPI has also been integrated by various fintechs to support efficient transactions.

BRIAPI has been connected with more than 700 partners. Several large companies that have been connected to BRIAPI, such as OVO, Shopee, and DOKU. BRI transaction services, such as BRI Direct Debit and BRIVA are now available in the application and make it easier for customers to make transactions directly there. With this, RI is taking part in the digital payment trend, through BRIAPI open banking.

2. Collaborating with Non-Digital Companies

Not only reaching digital companies, BRIAPI is also integrated with non-digital companies, such as education. One of the educational institutions that has been integrated with BRIAPI is Sanata Dharma University (USD). Now, all USD administrative and financial matters are supported by the convenience of BRIVA for payments internal to the campus. Not only that, the payment process by students is also easier and more comfortable with the installment system thanks to BRI's support through BRIAPI.

3. Providing Non-Cash Payment Instruments for MSMEs

With the digitalization transformation of MSMEs, the evolution of the payment system also has an impact on the transaction process which is also getting easier with the choice of non-cash or digital payment systems from its customers.

For this reason, BRIAPI is here to meet the needs of these MSMEs. For example, providing payment access through a BRIVA virtual account. Through this, BRI is helping to create a cashless society. In addition, MSMEs can take advantage of the Mutation Information API from BRIAPI to access related banking activities.

Apart from those mentioned above, BRIAPI also presents a variety of innovations that allow integration with BRI's banking services. This can happen because the API is not only limited as a means of payment assistance, but is also capable of being a financial management tool for many other banking functions in further development.

Also read: The Importance of Digitizing MSMEs in 2022



The payment system in Indonesia is inseparable from the public's need for easy trade transactions. Since long ago, people have used payment systems ranging from barter systems, cards, to digital as it is today.

BRIAPI provides technological flexibility to meet the needs of both individuals and business groups and companies in the transaction process. Currently, there are many corporate partners who cooperate with BRIAPI. BRIAPI provides convenience with the integration of digital payment instruments. In this way, it can be seen that indeed BRIAPI has participated in the evolution of the payment system in Indonesia. You can also become one of them by integrating with BRIAPI and taking advantage of the various services available.