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Benefits of Using BI-FAST for Disbursement in Indonesia: Get Paid Quickly in Real Time Online
February 15, 2023
An ACI Worldwide report stated that the Indonesian real-time payment system services market is expected to experience significant growth, reaching 1.6 billion transactions by 2026. This growth is projected to result in net savings of US$222 million for both businesses and consumers. Furthermore, it is estimated to contribute US$747 million in additional economic output, which equates to 0.05% of Indonesia's projected GDP.
With the continued popularity of digital payments and digital financial services, the future of the real-time payment system services industry in the country is highly optimistic. Bank Indonesia, the central bank, is determined to drive the digital transformation of the economy and increase financial inclusion for its 270 million citizens. The continued growth in the use of internet banking, e-wallets, and other electronic money solutions reinforces the positive outlook for the real-time payment system services market.
Disbursement services are a type of real-time payment system that allows businesses to make payments to their suppliers, employees, and other third parties quickly and easily. Disbursement services can be used to make payments in a variety of currencies, and they can be integrated with existing accounting and ERP systems.
There are a number of benefits to using disbursement services, including:
- Increased efficiency: Disbursement services can help businesses save time and money by automating the payment process.
- Improved accuracy: Disbursement services can help businesses reduce errors by eliminating the need to manually enter payment information.
- Increased security: Disbursement services can help businesses protect their sensitive financial data by using secure payment processing methods.
If you are looking for a way to improve the efficiency, accuracy, and security of your payment processing, then you should consider using disbursement services.
History of Real-Time Payment Systems in Indonesia
Before the onset of the COVID-19 pandemic, the Indonesian financial landscape was already equipped with several payment infrastructures. The first one is the Real Time Gross Settlement (RTGS) introduced by Bank Indonesia in 2000, which operates as an electronic funds transfer system in rupiah. RTGS was a critical component in processing payment transactions, but they mostly prioritize High-Value Payment System (HVPS) transfers that exceeded IDR 100 million (~US$6,600) per transaction. Funds will then be transferred in 3-4 hours upon clearance.
Afterward, in 2005, Bank Indonesia introduced the National Clearing System (SKNBI) as a key initiative to improve financial accessibility for the general public. The system streamlines financial transactions by facilitating the transfer of funds and processing electronic financial data for various services, including fund transfers, debit item clearing, recurring payments, and billing services. The service fees were made a lot cheaper compared to RTGS, but it takes approximately 2-3 business days for the recipient to receive their funds.
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Moving forward, the payment system infrastructure in the country is set to undergo a significant transformation with the introduction of advanced payment systems. One such system is BI-Fast,a real-time payment service launched by Bank Indonesia in December 2021. It was created to fuel the consolidation of the national retail payment system industry and further support the end-to-end integration of the digitalization of the country's financial ecosystem.
BI-FAST has been widely adopted by over 100 banks in Indonesia and offers a suite of instant digital payment services, including credit transfer, direct debit, and fund disbursements. The implementation of this system represents a pivotal moment in the digital transformation of payment services in Indonesia, offering increased convenience and financial accessibility to a large portion of the population, available 24/7.
Benefits of Utilizing BI-FAST For Real-Time Disbursements
BI-FAST offers a range of financial solutions, but one of its key advantages that will help businesses in Indonesia is the capability to deliver real-time disbursement services to clients, often referred to as "fast disbursements". BI-FAST payments provide a hassle-free experience for all disbursement operations, including sending and receiving payments from vendors, the facilitation of retail payments between customers, and the distribution of payroll funds to employees.
Hence, here are several advantages of using BI-FAST for a business' disbursement services:
1. Send Funds 24/7
BI-FAST offers 24/7 fund transfer services in Indonesia, benefiting businesses with increased efficiency, reduced missed payments risk, and improve financial operations. It caters to the high demand for around-the-clock financial services in the region, where receivers are guaranteed in getting funds with the shortest settlement time possible without having to go to the bank. In future developments, Bank Indonesia is positive that each transaction would be completed easily and quickly in under 25 seconds through more payment channels, such as mobile banking, ATMs, EDC devices, or even QR codes.
2. Stronger Security
Trust and security are critical components for businesses when it comes to managing their finances. BI-FAST recognizes this, which is why the platform is equipped with a robust Fraud Detection System, Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) systems, and real-time customer notifications.
The Fraud Detection System and AML/CTF systems prevent any suspicious activities and ensure transactions made through the platform are secure and compliant with regulations. The real-time customer notifications provide businesses with immediate updates on the status of their transactions and alerts on any funds sent through the system dashboard, allowing them to take quick action if necessary.
3. Increased Transfer Limit
Unlike regular online transfers (e.g. internet banking, digital wallets, or e-wallets) that only allow for a maximum of IDR 25 million (~US$1,644) per transaction, BI-FAST now allows for an increased maximum of IDR 250 million (~US$16,443) per transaction. This increase not only helps save time but also provides convenience for businesses in managing finances. With fewer restrictions (like virtual card: including virtual credit card and virtual debit card) on the amount of money that can be transferred, businesses can focus on their core operations, knowing that their financial needs are taken care of.
4. Lower Transaction Fee
BI-FAST's IDR 2.500 (~US$0.43) per transaction process offers a clear benefit for businesses compared to market pricing of IDR 6.500 (~US$0.16). This lower cost allows businesses to save money on financial transactions and invest resources in other areas. It also enables frequent transactions at a lower cost, boosting efficiency and reducing time spent on financial management.
Upgrade Your Fund Disbursement System Today!
As the banking and fintech sector in Indonesia soars to new heights, the retail payment system infrastructure has undergone a massive transformation. And now, disbursing funds has never been easier for your business with Ayoconnect's innovative solution - FAST Disbursement powered by BI-FAST!
With access to the latest Open API payment standards and the trust of over 200 businesses across Southeast Asia we are confident that we can provide your business with the best possible solution for any fund disbursement needs. From one-time bank transfers to recurring salary disbursements and vendor payouts with regular pay cycles, our FAST Disbursement solution offers a seamless and hassle-free experience for all transaction activities.
Ready to #MoveForward with us? Contact us for more information here!
