ALTO at the Forefront of Indonesia’s Digital Payments Landscape: An Interview with ACI Worldwide

By Ellisa | Apr 23 2021 23:23

As a leading national switch provider in Indonesia, ALTO stands at the forefront of digital payments landscape in the country, with a direct access to observe the immense growth of payments digitization and how it consequentially affects the domestic market’s surging reliance on various digital payment services. To capture these exciting opportunities, ALTO continuously implements a robust, flexible and scalable retail payments platform equipped with ingenious capabilities, hence propelling a stronger digital payments ecosystem that positively creates impactful waves in Indonesia’s payments space.

For these endeavours, ALTO notably received the Top Honors 2020 Innovation Award from ACI Worldwide, a leading global provider of real-time digital payment software and solutions, as ALTO simultaneously drives its payments system transformation through the innovative use of ACI’s portfolio of solutions. To understand the current state of payments in Indonesia and know further about its focal points, ACI Worldwide invites Patricco Baron, the CTO of ALTO Network, to share his in-depth outlook on the industry through an interview with Leslie Choo, the managing director of ACI Worldwide Asia.

“Many consumers in Indonesia still prefer paper-based payments, and payment card ownership is still very low when compared to the global average. However, mobile wallet adoption has skyrocketed in the country, with more than three-quarters of adults in the nation having used a mobile wallet in the past year,” said Patricco Baron. “During this time, more than six million new merchants can accept QR payments under the QRIS scheme. The Central Bank of Indonesia [BI] has put a target of 12 million merchants accepting QRIS by the end of 2021 – this clearly reflects a hunger for digital and real-time payments among both consumers and businesses.”

This dynamic environment, in turn, creates a synergy that positions ALTO just at the right standpoint, from which ALTO could strategically achieve their goals of having the fastest time to market and capture the growing digital transaction volumes. The opportunity should also be responded by a strict commitment to provide the best quality services – followed by the ceaseless undertaking to always innovate in order to keep up with the rapid pace of Indonesia’s digital payments transformation.

“Our vision is to become the most connected payments switch and the most innovative payments solution,” Patricco Baron explained about ALTO’s mission. “Through continuous innovation and high SLAs, we will be a leader within Indonesia’s payments landscape.”

The interview further delves into the story of ALTO’s transformational journey as it selected ACI to become its strategic payments technology partner, and how ALTO successfully implemented interbank network operations with over 65 financial institution members joining its connection network. There is also a highlight of ALTO’s objectives in the near future that include ALTO’s bi-directional expansion schemes to several Asian countries, multi-collaboration plans with BI, ACI and other national switches, and also releases of exciting technology roll-outs that will earnestly encourage our digital payments ecosystem to respond better to the national payments gateway’s future developments.

With all those projects put in plan, ALTO strives to work hard to ensure that every challenge is excellently met with exceptional readiness and capabilities, by continuously leveraging the quality of ALTO’s operational procedures and its digital payments systems.

“What determines a successful payment is its surrounding tools and operational efficiency. This includes the value-added services offered by an effective fraud detection system,” said Patricco Baron, who further emphasized that acceleration towards digital payments has inevitably attracted many fraudsters to attempt detrimental frauds targeting any vulnerabilities in the payments system. “Delivering a seamless payments experience has always been at the cost of fraud and the challenge has always been to find the balance between seamless payment and tedious authentication. At ALTO, we believe this balance can still be achieved without increasing the risk of fraud through machine learning innovation.”

Click here to read the complete ALTO interview with ACI Worldwide.

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