ATM-Debit Card Doomsday Is Inevitable, This Is The Replacement News – 10 hours ago

Jakarta, CNBC Indonesia-The heyday of Automated Teller Machines (ATMs) and debit cards is coming to an end. The apocalypse of these two technologies seems even more real when looking at the value of Bank Indonesia (BI) digital banking transactions.

BI noted that in January 2024 the value of digital banking transactions reached IDR 5,335.33 trillion or grew 17.19% year on year (yoy). On the other hand, use of ATM, debit and credit card services in the same period was only IDR 692 trillion or only grew 2.58% (yoy).

“The value of Electronic Money (EU) transactions increased 39.28% (yoy) reaching IDR 83.37 trillion. The nominal QRIS transactions were recorded to have grown 149.46% (yoy) and reached IDR 31.65 trillion, with the number of users 46.37 million and the number merchants 30.88 million, most of whom are MSMEs,” said BI Governor Perry Warjiyo, quoted on Sunday (10/3/2024).

Perry said BI is now targeting QRIS users to reach 55 million users by 2024. According to him, to achieve this target, BI is expanding cooperation between countries to increase transaction volume and encourage inclusion in the Digital Financial Economy (EKD).

BI Deputy Governor Filianingsih Hendarta revealed that BI will realize cooperation in using cross-border QRIS with Japan and the UAE in the near future. “Next, maybe with Japan. Hopefully we can try it soon because they have come to us, there have been deeper discussions,” said Filianingsih.

Currently, QRIS between countries can be used in Thailand, Malaysia, and most recently Singapore. With South Korea, Indonesia has signed a memorandum of understanding.

Filianingsih said that transactions using QRIS, which no longer require using US dollars, will decrease slightly in January 2024. This is influenced by transactions by tourists which decreased after high usage during the year-end holidays in December 2023.

Filianingsih said, with Thailand there was a decrease in volume but the nominal value continued to increase. Inbound transactions in volume were 1,121 with outbound transactions 23,715. The nominal amount is IDR 368 million for inbound while the outbound is IDR 10 billion.

Meanwhile, with Malaysia increasing, in terms of volume it reached 73,300, an increase of 10% outbound. In terms of nominal terms, inbound Malaysia to Indonesia is IDR 20 billion, then Indonesia to Malaysia IDR 2.9 billion.

“Indeed, more Indonesian tourists go to Malaysia, but they spend less, in fact Malaysians spend a lot. Well, Singapore also has the same decline in nominal volume but outbound volume has increased. Hopefully after January it can increase,” said Filianingsih.

[Gambas:Video CNBC]