INTUG Organizes Round Table at APECTEL 47

The 47th meeting of APEC's Telecommunications Working Group was held from 22 to 27 April 2013 in Bali, Indonesia. INTUG representatives organized its round table discussion, which focused on mobile payments.

The discussion was chaired by Heru Sutadi from the Indonesian Ministry of Commmunication and IT, and was opened by a Board Member of INTUG, Mr. Muhammad Jumadi. Five speakers shared their experiences of m-payment and their concerns about implementation.

  • Mr. Muhammad Jumadi from INTUG said that m-payment will be very important in enabling a cashless society, but there are several consumer concerns about implementation, including security, roaming and standardization.
  • Dr. Riant Nugroho from the Indonesian Telecommunication Regulatory Authority mentioned the regulatory challenges in Indonesia regarding digital money, especially m-payments. There is a need for a policy roadmap and collaboration policy between the telco and banking sectors.
  • Mr. Hirano from Yahoo! Japan described their experience in providing m-payments, using two kinds of payment: Yahoo! Wallet and Kantan Kessai (Easy Payment) for product auctions in Yahoo!
  • Mr. Setyabudi from the Indonesian Telecommunication Users Group stressed the importance of realtime transactions that can be accessed from anywhere, via reliable and trusted services, with affordable charging, prudent and adaptive regulation, and good quality of service.
  • Mr. Herlambang from Telkomsel spoke of their experiences and the challenges when implementing m-payments in Indonesia. Telkomsel is the largest mobile cellular operator in Indonesia, and they aim to help introduce a cashless society, to modernize the transportation, and to change peoples’ habits and thus modernize the country.

Following the speakers’ presentations of their experiences and concerns, the roundtable discussion continued with a question and answer session, in which participants shared m-payment experiences from other countries. After the Q&A, INTUG summarized the results (see below), and the roundtable was closed by Mr Nguyen, Deputy LSG Convenor.


Mobile payments will have an enormous impact on the whole world, and we are just at the beginning. Mobile payments will give access to bank transactions in many parts of the world, including villages where there are no bank offices and there is no fixed telecom infrastructure. In some countries, the use of mobile wallets in shops is already a reality, and in other countries mobile payments are being used to replace cash between friends.

It may become possible in the future for a government in a less developed country with a good mobile infrastructure to sponsor a low cost mobile device for the population, with a function to identify that person (e.g. finger print). Mobile payments can become the killer application that opens doors to communications with the government. This model might be cheaper than offering the population an identity card in a couple of years.

Mobile Payments will only be successful if there is good cooperation and collaboration between banks and telcos. A collaborative approach between banks and telecoms providers is critical for success. We need to leverage the strengths of businesses in both sectors to drive consumer awareness, confidence and uptake of services. Banks and telecommunications providers need to rely on each other’s licences to implement comprehensive mobile low-cost financial services.

There is a large potential for mobile payment services in the Asia-Pacific region, but there is still low penetration of e-money services, due to fragmented offerings and low customer awareness to drive behavioral change.

Mobile payments usage across multiple usage areas from transit to retail to remote payments can drive telcos’ growth towards a cashless society.

An open payment system will promote usage of e-payments. Mobile payments are being adopted all over the world in different ways, with many success stories such as Yahoo! Wallet and Yahoo! Kantan Kessai in Japan.

Source: INTUG

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