Name : YOSHIHARU HARANO
NIM : 042111233259
Class : IUP
Course : Banking and other FI
Recently BI has just announced BI Fast system with a lower cost of IDR 2.500 instead of
IDR 6.500. Each student should research about this BI Fast system and answer the
following questions:
1. What is the difference between BI Fast, GPN (Gerbang Pembayaran Nasional),
and QRIS system? Explain each functions and its advantages offered to
customers.
BI Fast is a service feature launched by Bank Indonesia that provides
real-time, online transfers with fewer administrative fees. Customers can conduct
purchases without providing an account number, instead using a cellphone number or
email address. BI Fast includes advanced features such as fraud detection, anti-money
laundering (AML), and counter-terrorism financing (CFT). It supports a variety of
payment methods, including QRIS, ATM, and EDC.
Advantages:
- Transaction costs are lower than with typical debit cards.
- Transactions are processed faster.
- Improved security and fraud prevention.
- Widely accepted in Indonesia, making it easy for customers to pay.
GPN (Gerbang Pembayaran Nasional) is a national payment gateway system
that connects interbank banking transactions to Bank Indonesia, ensuring secure,
dependable, and trustworthy electronic banking transactions. Customers can use the
GPN debit card to conduct banking transactions from any bank via ATMs and EDC
machines. GPN only applies to domestic transactions.
Advantages:
- Secure platform for online transactions.
- Enables easy integration with different payment systems.
- Provides a secure payment gateway for merchants who accept online
payments.
- Customers can make online payments through a single point of entry.
QRIS (QR Indonesia Standard): The Bank Indonesia created QRIS, a QR code
payment system, to ease payments in Indonesia. It is a standardized QR code that
merchants can use to collect payments from customers. The technology operates by
scanning the QR code generated by the merchant and deducting the payment from the
user's bank account.
Advantages:
- Ease of use for both retailers and customers.
- Allows for rapid and simple payment processing.
- Offers a standardized QR code that merchants may use to accept payments.
- Increases merchants' ability to receive payments from clients using
QRIS-enabled mobile wallets.
Distinctive differences between the three:
BI Fast:
a. Lower transaction cost: BI Fast provides lower transaction costs than
standard debit card transactions, making it more economical for both
customers and retailers.
b. Faster transaction processing: BI Fast conducts transactions faster than
standard debit card transactions, making payments more convenient and
efficient.
c. Increased security and fraud protection: BI Fast employs extensive security
measures to safeguard consumers against fraud and unauthorized transactions.
GPN:
a. GPN offers a safe environment for online transactions, which protects clients'
personal and financial information.
b. Allows for easy connection with other payment systems: GPN is designed to
work with other payment systems, allowing merchants to accept a wider range
of payment methods.
c. GPN simplifies the payment process by offering clients a single point of entry
to make online payments.
QRIS:
a. QRIS is easy to use for both merchants and customers, making it a handy
payment method.
b. QRIS allows for quick and easy payment processing, resulting in a smooth
payment experience.
c. QRIS offers a standardized QR code that shops may use to collect payments,
making it easier for customers to pay with their mobile wallets.
2. Do you think BI Fast or GPN can replace Visa or MasterCard in 3 to 5 years?
Explain your answer by comparing the local and foreign payment service
providers.
BI Fast and GPN are local payment systems created by Bank Indonesia to
streamline transactions within Indonesia. While Visa and MasterCard are globally
established payment systems, it is vital to highlight that BI Fast and GPN serve a
distinct market niche and are not direct competitors to these global behemoths.
Visa and MasterCard are global payment networks that serve banks and
financial organizations across the world. On the contrary, BI Fast and GPN are
designed for domestic transactions within Indonesia, whereas Visa and MasterCard
have a global reach. Despite this constraint, BI Fast and GPN provide significant
benefits, including lower transaction fees, faster processing times, and greater access
to payment services in Indonesia.
Visa and MasterCard, on the other hand, are widely accepted all over the
world and offer better fraud protection. Their wide network of merchants and
financial institutions strengthens their position in the global payment market.
However, it is worth noting that in certain situations, such as transactions within
Indonesia, BI Fast and GPN may surpass Visa and MasterCard in terms of transaction
prices and processing times.
While Visa and MasterCard continue to dominate international transactions
due to their established global networks and diverse services, BI Fast and GPN have
the potential to gain traction in Indonesia, aided by continued expansion and
partnerships with local banks and financial institutions.
In conclusion, although BI Fast and GPN may not surpass Visa or
MasterCard on a global scale within the next 3 to 5 years, their increasing popularity
within Indonesia and neighboring Southeast Asian countries suggests a promising
trajectory.
3. What are the challenges and obstacles faced by BI Fast and GPN ahead?
The key obstacles and challenges for BI Fast and GPN include assuring
security, retaining client trust, and growing the network of banks and financial
institutions that support these services. Furthermore, there may be technological
difficulties in integrating with existing financial systems and assuring interoperability
with various payment methods.
1. Limited acceptance: BI Fast and GPN are only available in Indonesia and
may not be accepted globally, as Visa and MasterCard are. This restricts their
use and may deter some customers from using them.
2. Security concerns: Although BI Fast and GPN are secure payment systems,
there may be issues with data breaches and fraud. Customers may hesitate to
utilize these systems if they believe they are less secure than Visa or
MasterCard.
3. Technical challenges for BI Fast and GPN may include scalability and
interoperability with other payment systems. As the number of users grows,
technological concerns may arise, affecting the system's performance and
dependability.
4. Regulatory challenges: BI Fast and GPN may face compliance issues with
international payment standards and data privacy legislation. This may limit
their capacity to expand globally and compete with Visa and MasterCard.
