Payment Innovation and Digital Transformation in Indonesia’s Banking Sector

September 10, 2025

The rapid rise of Indonesia’s innovation in financial service goes hand in hand with its digital transformation. At the heart of change is QRIS, Indonesia’s national QR-code payment standard. In 2024, QRIS saw a staggering 226.5% growth in transactions, serving over 50 million users and more than 32 million merchants, totaling around Rp 42 trillion (about US $2.6 billion) in value.

QRIS isn’t just local. By August 2024, it had integrated with payment systems in Thailand, Malaysia, and Singapore. On August 17, 2025, QRIS expanded to Japan—and trials are ongoing with China. Further rollout is planned for Saudi Arabia by 2026. This expansion makes Indonesia a leader in shaping regional payment standards that can drive trade, remittances, and financial access.

Growing Use of Digital Banking in Indonesia

Indonesia leads Southeast Asia with 17 fully digital banks, offering faster service, lower costs, strong security, and personalized features. A 2022 study by IFG Progress analysed 58 banks between 2015 and 2021. It found that 41.4% remain traditional, 39.6% are non-traditional, and 18.9% fall in between. But not all banks benefit equally from digital innovation.

A recent efficiency study covering 2015–2023 shows digital transformation helps large banks more than small and medium ones, where it may hurt performance if resources are limited. Banks are shifting toward digital channels, driven by customer demand for convenience and accessibility. Regulators like OJK and Bank Indonesia support this through rules and programs aimed at inclusion and stable innovation.

Setting the Scene: Indonesia’s Financial Digital Shift

Indonesia has over 180 million smartphone users and 79% internet access as of 2024, laying the base for digital financial growth. The government’s digital infrastructure push—especially 5G and rural connectivity—supports financial innovation and payment systems, while aiming for a leading ASEAN digital economy by 2045.

Bank Indonesia’s “Indonesia Payment System Blueprint 2025–2030” promotes secure, interoperable systems and responsible AI use across digital finance.

By 2021, bank account ownership rose to 52% from just 20% in 2011. Mobile money accounts soared from under 1 million in 2014 to nearly 19 million by 2021; meanwhile, 75 million people made mobile payments in 2021. These figures reflect how digital access is no longer optional but central to financial inclusion.

Innovation in Financial Service: Ideas and Impact

These developments show how innovation in financial service can reshape daily life:

QRIS allows any merchant to accept payments via any app or bank. That drives inclusion and data visibility.
Cross-border QR payments open doors for travel and trade, easing remittances.
Digital banks reduce costs while offering tailored experiences.
Government frameworks ensure innovation happens safely and fairly.
Yet smaller banks may struggle; digital moves must match capacity.

This leads to key ideas:

Support and scale digital tools like QRIS.
Train staff and consumers for effective use.
Tailor solutions to bank size and capacity.
Leverage digital to boost inclusion in remote areas.
Use the Blueprint and policies to guide safe growth.

Our Role: World Financial Innovation Series – Indonesia

As part of our commitment to promoting impactful financial innovation and payment, we proudly present the World Financial Innovation Series (WFIS) – Indonesia. This flagship fintech event APAC gathers more than 600 leaders from banks, regulators, fintech firms, and startups. Scheduled for November 25–26, 2025 at Raffles Jakarta, our event sets the stage for the latest innovations in digital banking, payment systems, AI, cybersecurity, core modernization, and e-KYC.

Why Attend?

At WFIS, one of the leading fintech events in APAC, participants will:

Explore digital banking, cloud and e-payment trends
Understand the impact of national policies
Learn what works for different bank sizes and how to manage digital risk.

Our Expertise and Credentials

We bring deep expertise in Asia-focused banking solutions. With access to regulators, banks, fintech, and microfinance institutions, our platform offers cutting-edge insights across the digital finance spectrum. Sessions include high-quality keynote talks, panel discussions, and networking. We align with government regulations, OJK standards, and Blueprint goals, ensuring event content meets policy and innovation needs. Our aim is not only to inform but also to help decision-makers build strategies that turn ideas into action.

Event Impact at a Glance

600+ senior digital leaders from banking and financial services.
Agenda covers e-KYC, digital banking, cybersecurity, cloud technology.
Alignment with regulatory frameworks that shape inclusive finance.

Join Us to Shape the Future

If you’re in banking, fintech, digital infrastructure, or regulation, our series is your platform. Connect, learn, and lead Indonesia’s innovation in financial service journey. Reach out today to be part of Indonesia’s financial innovation and payment revolution.In summary, Indonesia’s banking sector is innovating fast. QRIS is setting payment standards locally and abroad. Digital banks are rising, backed by inclusive policies and tech. But challenges remain, especially for smaller players. The World Financial Innovation Series (WFIS) – Indonesia brings the right minds together to build shared solutions. Join us and be part of change.