executing digital payment strategy
TRANSCRIPT
EXECUTING DIGITAL PAYMENT STRATEGY
HERU SUTADI
DIGITAL PAYMENTMobile and digital are changing the payment landscape fast, with new transaction types, payment methods, channels and technologies
These developments are disrupting the traditional payment market
NEW PAYMENTNew forms of payment in the
digital age changing the way people pay
The rise of e-commerceBenefits to the consumer and
retailer Increasing mobile usersOpportunity to make money
from new channels and technology
Supporting Cashless Society and Financial Inclusion
MOBILE MONEY Mobile financial services was first implemented in 2001 by
Mobipay in Spain, while mobile banking service has been given for years in some countries
Mobile money becomes the focus of attention because of this phenomenon a success in several developing countries
Statista—The Statistics portal—shows the worldwide mobile payment volume in 2015 was 450 billion U.S. dollars and is expected to surpass 1 trillion U.S. dollars in 2019
There are three main types of financial services: mobile money transfer, mobile banking and mobile payment
MOBILE MONEY – PAYMENT & BANKING
MARKET CHALLENGESAlthough the market is well established, there
are a number of barriers currently restricting it from reaching its full
potential and fulfilling the basic consumer needs:
ServicesReliabilitySecurity
SimplicityRewards
RESHAPING DIGITAL PAYMENTContactless adoptionRetailer AppsMobile Point of Sale (M-POS) solutionRealtime paymentMicropaymentCloud based paymentEnd-to-end purchase integrationCrypto-currencies
the digital payment landscape is changing both online and offline at a brisk pace
DIGITAL PAYMENT ECOSYSTEM
Digital payment ecosystem builds on the traditional payment infrastructure with an expanded value chain incorporating the following players:CustomerMerchantAcquirerCard Issuing Bank (CIB)Payment solution companyMobile Network OperatorTrusted Service ManagerMobile Handset ManufacturerUICC ManufacturerTerminal/Reader ManufacturerNFC chip manufacturerIC chip manufacturer
DIGITAL MONEY IN INDONESIA Electronic money provider
shall submit the license based on Bank Indonesia Regulation (PBI) No.11/12/PBI/2009 dated April 13, 2009 on Electronic Money and Circular Letter of Bank Indonesia (BI SE) 11/11/DASP on Electronic Money is Principal, Issuer, Acquirer, Clearing and Final Settlement Operator
There are 20 e-money provider
DIGITAL MONEY TRANSACTIONTransaction
Source: Bank Indonesia, 2016
MARKET FOR DIGITAL PAYMENTMarket for digital payment transformation is defined
by cash payments and card transactions
FACTORS IN EXECUTING DIGITAL PAYMENT STRATEGY
Set one strategy and governance across the bankFocus on connectivity soutions between consumers and
merchantsFix and integrate the core payment systemsDeliver fast and with low investmentBuild a radically new execution capabilityLeverage existing and emerging technologiesBuild digital payment propositions for mass adoption, and
then target niches Let customer use their account directly in digital
purchases
