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RUNNING AN E-WALLET BUSINESS

Electronic wallet or more popularly known as e-wallet ushered in the era of digital transactions. In order to provide certainty and legal umbrella for the existence of e-wallets, Bank Indonesia has issued Bank Indonesia regulation Number 18/40/PBI/2016 regarding Implementation of Payment Transaction Processing (“BI regulation No. 18/2016”) and Bank Indonesia Circular Letter No. 18/41/ DKSP dated 30 December 2016 regarding Implementation of Payment Transaction Processing (“BI Circular Letter
No. 18/2016”). What points to note for those interested in running an e-wallet business?

#1 General Requirements:

  • The party submitting an application for e-wallet license must be in the form of a Bank; or
  • for Non-Bank Institutions, must be in the form of a limited liability company (while also taking into account the sufficiency of paid-up capital of at least Rp3,000,000,000.- (three billion rupiah));
  • Banks or Non-Bank Institutions conducting electronic Wallet business with active users reaching or planned to reach at least 300,000 (three hundred thousand) users.1

#2 Feasibility Criteria for Service Operators:

  • Legality and profile of the company;
  •  Legal aspects;
  • Operational preparedness;
  • System security and reliability;
  • Business feasibility (while also taking into account the sufficiency of paid-up capital of at least Rp3,000,000,000.- (three billion rupiah));
  • Risk management adequacy (while also taking into account the sufficiency of paid-up capital of at least Rp3,000,000,000.- (three billion rupiah)); and
  • Consumer protection

Fulfilment of the criteria for feasibility aspect above, in terms of legality and profile of the company, must be substantiated with documents according to the type and material specified in Annex I point C of BI Circular Letter No. 18/2016.

-EDN-

1. Article 8 of BI regulation No. 18/2016