Bank Indonesia ( BI ), the country’s central bank, has expanded the cross-border reach of its QR code-based payment system to Japan and plans to include China by year end.

The Quick Response Indonesian Standard ( QRIS ), which was launched domestically in 2019, has become the dominant digital payment method in the country, with over 57 million active users.

The expansion into Japan and China is the country’s foray into digital payments outside of the Association of Southeast Asian Nations ( Asean ) region. Indonesia currently has similar cross border payment agreements with Malaysia, Thailand and Singapore.

The expansion is a milestone in digital financial integration, says BI governor Perry Warjiyo, adding that it will improve efficiency for tourists, while also supporting economic ties with partner countries.

“QRIS innovation continues to evolve to expand acceptance and support digital economic and financial inclusion,” Warjiyo notes. “One such innovation is cross-border QRIS.”

In Japan, the service is initially available at 35 merchants carrying the JPQR Global logo, beginning August 17.

JPQR, Japan’s own unified QR code payment standard, will allow Indonesian tourists to scan a single JPQR Global code with their QRIS-enabled mobile banking or e-wallet apps to complete transactions seamlessly at participating Japanese merchants.

The number of merchants accepting cross-border payments is expected to grow, BI notes, and the two countries are working to enable Japanese tourists to use their own payment apps in Indonesia using QRIS.

Meanwhile, BI and the People’s Bank of China have begun a pilot to interconnect payment systems, with the goal of being operational by end-2025. The pilot programme, BI shares, is its final phase of sandbox testing.

Like its other linkages, the China cross-border payment scheme will involve the Indonesian Payment System Association, UnionPay International and various Indonesian providers.

In addition to Japan and China, BI is also working to make QRIS payments available in India, South Korea and Saudi Arabia.