Three Indonesian Banks have applied for payment licences to offer WeChat and Alipay payment services locally

According to media reports, three local banks in Indonesia have applied to Bank Indonesia for payment of licences by August 2019 in an effort to reach a partnership with Wechat and Alipay. The move paves the way for the Chinese digital payments giant to operate legally in the Indonesian archipelago.

As early as 2018, WeChat payments and Alipay payments were castigated by Indonesian Banks for offering payment services to Chinese tourists in Bali without obtaining local payment licenses, and were told they needed to cooperate with local financial institutions to operate legally in Indonesia.

Bank Indonesia is Indonesia’s central Bank, which regulates the country’s payment system.

“So far we have received applications for payment licences from three Banks,” Filianingsih Hendarta, head of payment systems policy at the central bank, said on July 17, according to antara news agency.

Central Asia, Indonesia’s largest listed private bank with assets, confirmed that it was indeed paving the way for its future partnership with WeChat and Alipay.

WeChat and Alipay’s Indonesian rival Siuo Group’s OVO, Go-Pay, go-king Indonesia’s payment subsidiary, And Indonesia’s Emtek Group and Ant Financial’ DANA, And LinkAja, Indonesia’s state-owned payment platform.