Korea will launch a QR code payment service in Indonesia by the end of 2025, according to the Korea Financial Telecommunications & Clearings Institute (KFTC).

This initiative aims to promote Korea’s digital financial systems across Asia.

Indonesia will be the first Asian country to adopt this system.

It aims to create a cost-effective network for financial transactions without the need for credit cards.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ QR payments enable emerging markets to leapfrog traditional banking infrastructure

Korea’s QR code initiative in Indonesia follows a well-established pattern of payment evolution already proven in Asia’s largest economies.

QR code-based systems flourished first in China, where mobile payment volumes exploded from 1.2 trillion yuan in 2013 to 58.8 trillion yuan in 2016, dramatically reducing reliance on traditional payment methods 1.

This technology succeeds particularly in regions with high smartphone penetration but relatively low credit card adoption, conditions present in Indonesia where cash transactions have already dropped from over 70% to 51% since 2020 2.

QR codes offer significant cost advantages over alternatives like NFC, with readers costing just 200-500 yuan (approximately $28-$70) compared to 800-2000 yuan for traditional POS terminals 3.

For merchants, especially small businesses, this affordability dramatically lowers barriers to accepting digital payments, explaining why over 30 million Indonesian merchants already accept QRIS (Quick Response Code Indonesia Standard) payments 2.

The technology creates a cycle: cheaper infrastructure leads to broader merchant adoption, which increases consumer usage, ultimately accelerating the transition from cash to digital payments.

2️⃣ Southeast Asia emerges as the new battleground for digital payment providers

Korea’s entry into Indonesia illustrates the intensifying competition for dominance in Southeast Asia’s rapidly expanding digital payment market.

Indonesia’s digital payments sector is projected to grow at 17.33% annually, reaching USD 115.34 billion by 2025, making it an attractive target for international payment providers 2.