Indonesia launches real-time payments infrastructure BI-FAST

Twenty banks are already live and have access to 24/7 real-time credit transfers.

Bank Indonesia (BI) has launched BI-FAST, Indonesia’s first real-time payments infrastructure, in partnership with payment services provider ACI Worldwide.

A total of 20 banks across the country are already live in the first phase of BI-FAST’s roll-out. Participating institutions now have access to a series of services that include 24/7 real-time credit transfers with real-time transaction settlement at a bank and personal level; unique identifiers (proxy addresses) to simplify, secure and facilitate payments; and integrated real-time fraud detection.

When complete, BI-FAST will reportedly incorporate 135 banks apart from various good merchants and payment service providers. This will make it one of the world’s largest real-time payments initiatives, according to ACI Worldwide.

The development of BI-FAST is part of Indonesia’s Payment System Blueprint, IPS 2025. IPS 2025 aims to transform the country’s payment infrastructure, integrate its digital economy, and finance sector, and respond to public demands for a fast, easy, safe, affordable, and reliable payment system.
 
This is especially needed in Indonesia, where digital payments are now in regular use by more than half (55%) of the country’s consumers, according to a study by Google, Temasek, and Bain & Company. 

“The rapid growth over the past year highlights Indonesia’s dramatic shift towards digital payments due to the pandemic,” ACI Worldwide wrote in an announcement of BI-FAST’s launch, adding that the Indonesian government anticipates even greater adoption with real-time payments and a further boost to its digital economy ambitions.