1.
EXECUTING DIGITAL PAYMENT
STRATEGY
HERU SUTADI

2.
DIGITAL PAYMENT
Mobile 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

3.
NEW PAYMENT
New forms of payment in the
digital age changing the way
people pay
The rise of e-commerce
Benefits to the consumer and
retailer
Increasing mobile users
Opportunity to make money
from new channels and
technology
Supporting Cashless Society
and Financial Inclusion

4.
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

5.
MOBILE MONEY – PAYMENT & BANKING

6.
MARKET CHALLENGES
Although 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:
Services
Reliability
Security
Simplicity
Rewards

7.
RESHAPING DIGITAL PAYMENT
Contactless adoption
Retailer Apps
Mobile Point of Sale (M-POS) solution
Realtime payment
Micropayment
Cloud based payment
End-to-end purchase integration
Crypto-currencies
 the digital payment landscape is
changing both online and offline at a
brisk pace

8.
DIGITAL PAYMENT ECOSYSTEM
Digital payment ecosystem builds on the traditional
payment infrastructure with an expanded value chain
incorporating the following players:
Customer
Merchant
Acquirer
Card Issuing Bank (CIB)
Payment solution company
Mobile Network Operator
Trusted Service Manager
Mobile Handset Manufacturer
UICC Manufacturer
Terminal/Reader Manufacturer
NFC chip manufacturer
IC chip manufacturer

9.
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

10.
DIGITAL MONEY TRANSACTION
Transaction
Source: Bank Indonesia, 2016

11.
MARKET FOR DIGITAL PAYMENT
Market for digital payment transformation is defined
by cash payments and card transactions

12.
FACTORS IN EXECUTING DIGITAL PAYMENT
STRATEGY
Set one strategy and governance across the bank
Focus on connectivity soutions between consumers and
merchants
Fix and integrate the core payment systems
Deliver fast and with low investment
Build a radically new execution capability
Leverage existing and emerging technologies
Build digital payment propositions for mass adoption, and
then target niches
Let customer use their account directly in digital
purchases

13.
Thank You…
Heru Sutadi
Email: hersut@outlook.com
Twitter: @herusutadi