JAKARTA (Reuters) – Mastercard Inc (MA.N) said on Thursday it signed an agreement with Indonesian payment switching firm Artajasa Pembayaran Elektronis to make a foray into the Southeast Asian country’s national payment gateway system.
The central bank has approved the collaboration, which currently covers debit card transaction processing, in July, U.S.-based payments giant Mastercard said in a statement.
Indonesia launched its national payment gateway system in December 2017 to ensure all debit card transactions within the country are settled using domestic infrastructure.
The central bank has put a 20% limit on foreign ownership in any company that offers electronic payment services in the system.
There were 6.4 billion debit card transactions made in Indonesia in 2018, for cash withdrawals, trades and transfers, worth 6,927.3 trillion rupiah ($485.79 billion), according to Bank Indonesia data.
In the future, Mastercard and Artajasa could work on other transaction processing, including digital payment in e-commerce, Mastercard said.
Reporting by Gayatri Suroyo; Editing by Rashmi Aich