As a business owner, it is crucial to provide exceptional customer service, particularly when it comes to payment methods. Offering a dependable payment option not only enhances customer satisfaction, but can also boost your revenue. To accomplish this, you might want to consider integrating QRIS–one of the most popular payment services in Indonesia, which has already been adopted by over 24 million merchants!
So, what is QRIS? What are the advantages of incorporating this payment method into your business, and how can you enable QRIS payments for your business? Let’s take a deep dive into QRIS in this article!
What is QRIS?
QRIS, short for Quick Response Code Indonesian Standard, is a digital payment standard that employs QR codes to facilitate cashless transactions. With QRIS, customers can effortlessly make payments by simply scanning the QR code displayed by your business.
As of February 2023, QRIS has been adopted by 24.9 million merchants in Indonesia, with a total of 30.87 million users. Additionally, the cumulative transaction value through QRIS has reached Rp12.28 trillion, encompassing a transaction volume of 121.8 million.
The ever-increasing number of users and transactions each year has solidified QRIS as one of the most favored payment alternatives among Indonesian customers.
Why do customers prefer QRIS as their payment method?
Before we get into why providing QRIS payments is important for your business, we need to first understand why many customers prefer QRIS as a payment method. Here are the four primary reasons:
- Ease of use
QRIS offers customers a hassle-free payment experience. With just a few simple taps on their mobile phones, they can scan the code and choose their preferred digital wallet to complete the transaction. This makes the shopping experience more convenient and efficient. - Transaction speed
Customers always seek a speedy checkout and payment process, and QRIS delivers exactly that. After scanning the QR code, customers receive immediate payment confirmation, taking only a few seconds to complete the transaction. - Payment flexibility
QRIS allows customers to make payments ranging from Rp1 to Rp20 million per transaction. This flexibility means customers are not bound by minimum transaction amounts, unlike other payment methods, such as credit cards or debit cards. - Increased awareness
Educational efforts regarding QRIS and cashless payments have significantly increased public awareness of the benefits and practicality of QRIS.. As a result, using QRIS has become a daily habit for some consumers. Moreover, QRIS payments are fully regulated by the government, so customers are confident of the security of their transactions through QRIS.
7 Benefits of QRIS Payments for Your Business
After understanding what is QRIS and the benefits from the customers’ perspective, it’s time to delve into the benefits of QRIS payments for your business.
- Simplified transactions
You only need to present a QR code for customers to scan using their smartphones. They can then complete the payment by choosing their preferred digital wallets or banks from a wide range of payment methods. These transactions are reflected in your records automatically, so, as a merchant, you can greatly streamline your transaction processing. - Faster and more efficient
QRIS payments are reflected in your records automatically, so, as a merchant, you can greatly streamline your transaction processing. . There’s no need to wait for manual verification or handle cash, so you can serve customers more efficiently, reduce queue times, and enhance customer satisfaction. - Enhanced security
QRIS payment methods reduce the chance of theft or data misuse, as payment information is shared electronically rather than physically, minimizing exposure of the data to others. Additionally, QRIS adoption lowers the risk of transaction errors as payment confirmation can be promptly obtained by both merchants and customers. - Expanded customer base
The thriving digital ecosystem in Indonesia, marked by widespread smartphone use and cutting-edge payment technology, has spurred the popularity of QRIS. With the ever-increasing number of QRIS users, implementing this payment method can help your business reach a broader audience. - Lower transaction costs
QR payments incur lower transaction fees compared to other payment methods–only 0.7% of the total transaction value. This government-regulated fee offers long-term cost reduction for businesses, improves profitability, and provides a competitive advantage. - Easy transaction analysis and tracking
QR payments can be seamlessly integrated with your business management system, enabling you to analyze and track transaction data. You can use this information to understand customer behavior, identify sales trends, and make data-driven decisions. - Enabling seamless cashless payments in your offline (physical) store
By providing QRIS payments at your brick-and-mortar stores, you can mitigate some of the problems that may arise with cash transactions, such as the inefficiency of providing change, the risk of receiving counterfeit money, and even the unfortunate situation of customers canceling their purchase because they don’t have enough cash. With QRIS, customers can transact cashlessly, ensuring a smoother and more secure payment experience.
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The rising popularity of QRIS payments = more opportunities for your business!
Potential for substantial growth
Based on our internal data, merchants who have implemented QRIS payments have experienced remarkable growth in transaction volume, with some experiencing up to a tenfold increase within a 12-month period.
These merchants span various categories, with a notable presence in sectors such as mobile app providers, digital products, online travel agents, and e-commerce products.
Opportunities for International Expansion
If you have plans to expand your business market overseas, now’s the right time to consider providing QRIS payments.
Given the Indonesian government’s efforts to promote the adoption of QRIS for international transactions, the number of QRIS users is expected to continue to grow
In 2023, the government officially launched and committed to implementing QRIS transactions in several Southeast Asian countries, including Malaysia, Thailand, the Philippines, and Singapore (currently in the finalization stage).
This initiative stems from the collaboration between Bank Indonesia (BI) and four ASEAN central banks: Bank Negara Malaysia (BNM), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT). The collaboration was established through the MoU on ASEAN-5 Regional Payment Integration, which was signed during the G20 Summit, under Indonesia’s G20 Presidency.
Furthermore, there are even plans to extend the use of QRIS to other Asian countries like Japan and South Korea in the near future.
Considering these promising developments, QRIS payments may be able to help you expand your market without worrying about implementing the right payment methods overseas.
How to Enable QR Payments for Your Business?
Next, let’s explore the process of implementing QR payments for your business. Here are the steps to provide QR payments:
Choosing the right type of QR code payment
It is important to note that there are two types of QR payment services: Dynamic QR and Static QR.
- Dynamic QR
Dynamic QR code payments allow customers to make payments directly after scanning the code without entering the purchase amount. These QR codes can only be used once and expire automatically after a single use. If customers want to perform more transactions beyond the first one, they will need to scan a new QR code with a different value as adjusted by the merchant.Dynamic QR codes are suitable for both online and offline businesses that aim to streamline their payment process, as customers don’t need to manually enter the purchase amount. - Static QR
Static QR codes enable the use of a single QR code for all payments. However, after scanning the code, customers must manually enter the transaction amount.Static QR codes are suitable for offline businesses where the QR code for payment can be displayed directly in front of the cashier. However, it is essential to verify that the amount entered by the customer matches the total purchase amount.
Selecting the right QR code option for your business is important, so that you can provide convenient and efficient payment options for your customers. This not only enhances their shopping experience but also contributes to the growth and success of your business in the digital era.
Integrate with Xendit for Providing QR Payments!
Enabling QR payments through Xendit is a straightforward process. Just follow these steps:
- Sign in and fulfill all the necessary requirements.
- Test and integrate your account by following the instructions provided.
- Once your account is active, create and print orshare your QR codes to start receiving payments. All transactions will be automatically recorded on the Xendit dashboard.
- Customize the QR types and manage other transactions using the available reporting features on the dashboard.
- You can withdraw funds within 2 days.
With these five simple steps, you can offer QR payment services and support the growth of your business!
If you have any questions or inquiries regarding QR payments, please feel free to contact our customer success team, available 24/7. They will be happy to assist you!
