Ayoconnect , an Indonesia-based Open Finance API platform, has partnered with Mastercard to modernise bank account-based payments and co-create Open Finance solutions in Indonesia. Both parties said that they are working on will offer consumers a payment experience on merchant’s checkout that is simple and secure, debited directly from consumers’ preferred bank accounts.

The solution will also enable consumers to manage their bill payments more efficiently, and billers on the other hand will enjoy guaranteed timely payments. The new solution that Ayoconnect and Mastercard are working on will offer better customer protection and dispute resolution capabilities, which are not typical in account-to-account payments. Another benefit of this solution is the ability for billers to remove recurring payment obstacles, reduce drop-offs during checkout, and ensure timely collections by offering their consumers a frictionless experience.

This partnership will leverage Ayoconnect’s connectivity to the Open Banking APIs of the country’s largest banks, as well as Mastercard’s leading security capabilities including tokenization, cyber intelligence, and anti-fraud technology to offer a more streamlined experience with enhanced transaction security. The digital payments market in APAC Consumers in the Asia Pacific region remain among the most enthusiastic adopters of digital payments in the world, with 69% of them increasing their usage of at least one digital payment method in 2022. The number of digital payment users in Indonesia will continue to grow, with ecommerce and mobile payments increasing by over 45% and 18% respectively from 2022 to 2027.

Similar to India, Open Banking represents a massive opportunity. As such, regulators have expressed support for Open Banking as part of Indonesia’s digital financial transformation reform. In 2019, Bank Indonesia (BI) put in place its ‘Indonesia Payment Systems Blueprint 2025,’ laying out five main key areas of focus: Open Banking; retail payment systems; financial market infrastructure; data; and regulatory, licensing, and supervision.

As part of its Blueprint 2025, BI has developed a real-time retail payment system infrastructure (BI-FAST), published an Open Banking roadmap for data ownership, and standardised Open API payments for industry players. The Open Banking solution As consumer expectations for a seamless payment experience rise, the fast-evolving Open Banking landscape has the potential to make the process simpler and more secure while boosting economic growth and financial inclusion, particularly in Indonesia, where 51% of the population is unbanked. With Open Banking, unbanked population in the country will be able to get access to various financial products, as Open Banking spurs the creation of alternative and innovative solutions that are more accessible to consumers.

Moreover, consumers can have full access to their digital financial footprint and use their financial data to gain a better understanding of their overall financial position, from savings and deposits to spending habits and monthly payments such as paying bills directly from their bank account. .