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 Embracing Direct Debit as a Popular Payment Method: Discover 7 Leading Banks With Direct Debit Options in Indonesia

Embracing Direct Debit as a Popular Payment Method: Discover 7 Leading Banks With Direct Debit Options in Indonesia

5 min read
May 31, 2023

Direct debit is rapidly gaining popularity as a groundbreaking payment option across numerous regions in Southeast Asia, including Indonesia. This innovative payment solution is swiftly captivating the attention of individuals and businesses alike, as it revolutionizes financial transactions with its seamless convenience and heightened security.

Customers are empowered to authorize automated deductions from their bank accounts for recurring payments such as utility bills, telephone bills, streaming services, and more. This enhances convenience and eliminates the hassle of making payments manually for these services during each recurring period. Direct debit provides a game-changing level of ease and efficiency by automating payment processes, making it an increasingly preferred choice for individuals and businesses in the region.

How to Start Offering Direct Debit Payment Solutions to Your Customers in Indonesia?

Regardless of which industry you are in, if your business is looking to provide direct debit as a form of collecting recurring payments to your Indonesian customers, here are the general steps you can take:

  1. Understand the regulatory requirements for direct debit services in Indonesia to ensure compliance.
  2. Select a reliable payment gateway provider that offers direct debit services, considering factors like security and compatibility.
  3. Establish partnerships with banks supporting direct debit to expand your options and ensure reliable payment processing.
  4. Integrate direct debit functionality into your existing payment system, collaborating with your IT team or developers for smooth integration.
  5. Communicate the benefits of direct debit to customers, streamline the onboarding process, and provide ongoing support for a seamless experience.

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7 Banks that Support Direct Debit in Indonesia

1. Bank Rakyat Indonesia (BRI)  

BRI, one of Indonesia's largest state-owned banks with over 70 million customers, is crucial in promoting financial inclusion and supporting the growth of MSMEs. It offers various digital services such as mobile banking apps, internet banking, and digital payment solutions to meet the changing demands of customers in the digital age.

Additionally, BRI is also one of the leading direct debit service providers in the country, catering to the needs of digital businesses including e-commerce, subscriptions, insurance, and more. This integration allows customers to register their cards once and use a one-time password (OTP) for future transactions, ensuring both convenience and security.

2. Bank Mandiri

Bank Mandiri is also one of Indonesia's largest and most prominent state-owned banks, offering a comprehensive range of financial services to individuals, businesses, and government entities, having one of the most extensive branches and ATM networks nationwide.

The bank’s direct debit feature is available for their customers with debit cards with Visa and GPN logos, where they can conveniently make immediate payments for various transactions within popular e-commerce applications, with integrated features planned for other digital platforms. They also open direct debit integration to other partnering institutions and businesses across the country.

3. Bank Negara Indonesia (BNI)

BNI is Indonesia’s fourth-largest bank in terms of assets, lending, and third-party funds, with a large number of branches nationwide and seven international branches, including Singapore, Hong Kong, the United States, and England.

As a direct debit payment provider, their solution offers secure and convenient payment transactions on various websites, apps, online stores, and other platforms of partnering businesses. It has a customizable daily limit and OTP validation. BNI’s direct debit solution includes three types of services: Retail, Non-Retail, and Billing, catering to different business needs. It also helps eliminate the need for extra apps, allows transactions anywhere, and ensures security for businesses and customers.

4. CIMB Niaga

CIMB Niaga, the second-largest private bank in Indonesia in terms of assets, provides a wide range of conventional and shariah banking services. With a strong presence of over 400 branches nationwide, combined with branchless banking platforms, CIMB Niaga offers customers a comprehensive portfolio of services, including consumer banking, SME and commercial banking, and more.

In 2021, CIMB Niaga introduced OCTO Cash, their direct debit API, catering to the Indonesian market, following their success in other Southeast Asian countries. This innovative solution enables other businesses like fintech firms or major e-commerce platforms like Tokopedia or Blibli to conveniently and securely deduct recurring payments from their customers. The registration process is relatively simple and user-friendly, only requiring customers to complete the initial binding process once and use OTP for subsequent transactions.

5. Bank Danamon

Bank Danamon, supported by MUFG Bank, is a leading Indonesian bank with a consolidated asset of IDR 194 trillion (as of 2021), managed alongside its subsidiary, Adira Finance. It provides a wide range of comprehensive financial products and services, catering to various segments such as consumer banking, SMEs, corporate, commercial, sharia, and automotive financing.

Bank Danamon offers its individual customers a direct debit service, allowing them to conduct online payment transactions using their Danamon account as the source of funds on partnered third-party applications or websites. This service ensures a convenient and secure payment experience, enabling customers to utilize their Danamon account for seamless online transactions.

6. Bank Syariah Indonesia (BSI)

BSI is an Islamic bank, owned by the state, that resulted from the merger of three major bank subsidiaries: BRIsyariah (BRI), Bank Syariah Mandiri (Bank Mandiri), and BNI Syariah (BNI). The bank offers financing solutions to private business entities, consumer loans for various needs, micro-financing for individuals and micro-entrepreneurs, as well as a range of non-financing products and services.

In early 2022, BSI also collaborated with Ayoconnect to provide a direct debit facility that allows the bank’s customers to pay for online purchases by allowing merchants to deduct funds from the BSI accounts directly. This collaboration was part of the bank to accelerate Sharia banking inclusion in Indonesia.

7. Bank Neo Commerce (BNC)

BNC, a subsidiary of Buy Now Pay Later (BNPL) firm Akulaku, is a popular commercial digital bank in Indonesia. With three key segments - Loan, Funding, and Treasury - BNC offers a diverse range of products and services, including funding options, wealth management products, and a variety of financial services such as loans, mortgages, credit cards, and insurance.

The new bank has already partnered with Arash Digital and Wallyt’s to leverage its direct debit digital payment servicesin the past. They also worked together with Ayoconnect recently in 2022, opening their services to Ayoconnect’s direct debit solution.

Get Started with a New Payment Method and Let Your Customers Experience Direct Debit Now!

As the trusted fintech partner for all banks mentioned above, Ayoconnect offers seamless integration to the direct debit services of these 7 leading Indonesian banks through a single API integration. Being the leading Open Finance solution platform in Southeast Asia providing various payment solutions, we assure you that your business can receive instant payments from customers without the hassle of manual billing for each transaction, enhancing your overall payment flow.

With our easy-to-use dashboard for monitoring and 24/7 customer service team, we are confident that our Direct Debit payment solution will be able to support your business' payment infrastructure for any of your customer billing needs, whether it’s to process recurring payments (e.g. loans, subscription services, utility bills), or one-time payments from your business clients or even customers’ online shopping transactions.

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