Mastercard collaborates with Indonesian firm on payment gateway system

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Mastercard Inc said on Thursday it signed an agreement with Indonesian payment switching firm Artajasa Pembayaran Elektronis to make a foray into the Southeast Asian country’s national payment gateway system.

The central bank has approved the collaboration, which currently covers debit card transaction processing, in July, U.S.-based payments giant Mastercard said in a statement.

Indonesia launched its national payment gateway system in December 2017 to ensure all debit card transactions within the country are settled using domestic infrastructure.

The central bank has put a 20% limit on foreign ownership in any company that offers electronic payment services in the system.

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There were 6.4 billion debit card transactions made in Indonesia in 2018, for cash withdrawals, trades and transfers, worth 6,927.3 trillion rupiah ($485.79 billion), according to Bank Indonesia data.

In the future, Mastercard and Artajasa could work on other transaction processing, including digital payment in e-commerce, Mastercard said.

Yetunde Adegoke

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