Visa and ALTO launch domestic debit card processing partnership in IndonesiaBy ALTO Network | Jun 10 2021 15:15
JAKARTA, 10 June 2021 — Visa, the world’s leader in digital payments, and ALTO, Indonesia’s leading provider of end-to-end bank switching and digital payment solutions, officially launched their partnership in domestic debit card processing today, supported by Bank Indonesia.
Through this partnership, Visa and ALTO will work together to bring global excellence to the National Payment Gateway, upgrading ALTO’s capabilities to become world-class in security, operational efficiency, and risk management. The partnership will also see the latest payment innovations and value-added services be made available for businesses and consumers while expanding the overall acceptance of contactless and e-commerce payments in the country.
Welcoming this partnership, Airlangga Hartarto, Coordinating Minister for Economic Affairs of the Republic of Indonesia, said: “We hope that Visa-ALTO partnership will greatly enhance the digital payment ecosystem, providing safer, faster, and cheaper ways to facilitate financial transactions. Such partnership could also reduce payment transaction costs, support policy effectiveness in the financial sector, and increase public trust towards digital payments and financial systems in general. This partnership would be a positive milestone for ALTO in improving its capabilities to become world-class through knowledge transfer, empowered by Visa in the fields of cybersecurity, risk management, as well as business continuity and operations.”
Fitria Irmi Triswati, Director of the Payment System Policy Department of Bank Indonesia, said: “Bank Indonesia fully supports the partnership between ALTO and Visa as a key step towards enhancing our local capabilities in domestic debit processing and ensuring world-class standards in terms of operations, risk management, and security. We believe this partnership will provide an added value in supporting Bank Indonesia’s Payment System Vision 2025, specifically related to a reciprocity principle in processing all domestic transactions within the National Payment Gateway system. We hope this partnership contributes to the growth of the digital economy in line with the national interest.”
According to Bank Indonesia data, personal spending is on the rise with 64.5 million debit card transactions worth Rp 29 trillion being recorded in April 2021, almost double that of April 20201. This figure shows an increasing appetite for household consumption and optimism towards gradual economic recovery amidst the COVID-19 pandemic.
Sung Y. Kim, United States Ambassador to Indonesia, also expressed his gratitude: On behalf of the U.S. government, I am delighted to endorse this partnership, which I believe is vital to developing a world-class national payment system in Indonesia. Visa’s long history of innovation and transformation in worldwide payment technology, combined with ALTO’s footprint and role as a leading switching agency in Indonesia’s National Payment Gateway (GPN), will ensure the best financial services are available for Indonesians.”
Riko Abdurrahman, President Director of Visa Indonesia, said: “We’re excited to be bringing Visa’s advanced payment technology and more than 60 years of experience running a global payments network to this partnership with ALTO. This partnership will position ALTO as the preferred National Payment Gateway partner in Indonesia and see them operating at a world-class standard. Together, we hope to empower the nation in embracing the digital economy, and expanding access to digital payments through a safe, secure, and seamless national payment system.”
Armand Widjaja, CEO of ALTO Network, said: “We share the vision with Visa to empower the nation through servicing our consumers with world-class debit processing. The partnership marks a significant achievement to ALTO’s ambitious goal in becoming the leading and trusted payment and digital system partner in Indonesia, that offers the latest technology and business excellence. As we prioritize the security and reliability of our network that has a 99.9% up-time service level agreement, we look forward to working with Visa in ensuring that ALTO’s services continue to be enhanced for our clients and consumer satisfaction.”