Table of Contents
Key Takeaways:
- Payment System Providers (PSP) include PJP, PIP, and Commercial Banks that conduct activities within the Payment System ecosystem according to Bank Indonesia’s framework.
- Choosing a payment provider is not just a matter of licensing, but also needs to consider payment methods, capabilities, experience, and the ability to support business growth.
- Verify licensing status through official Bank Indonesia channels before selecting a payment provider for your business.
Customers simply choose their payment methos, click the "Pay" and the transaction is complete.
From the customer’s side, the process looks seamless. However, behind that single transaction, there are systems and multiple parties working together to connect customers, businesses, banks, and payment service providers.
For businesses, the role of a payment provider might only become noticeable when a transaction encounters an issue. In fact, the role is much larger. Payment providers become part of the infrastructure that supports businesses in receiving and processing customer transactions.
Because payment activities are involved, these services operate within a regulatory framework. In Indonesia, regulations govern parties that provide payment services, including through licensing and supervision by Bank Indonesia.
So, what is a Payment System Provider (PSP), what role does it play in the payment ecosystem, and why is its licensing status important for businesses?
Understanding Payment System Providers
When a customer completes a digital payment, various parties are involved in the process. Ranging from parties providing payment services to parties providing infrastructure to process transactions, all become part of the Payment System ecosystem.
Under Bank Indonesia Regulation No.10 of 2025 concerning Payment System Industry Governance, Bank Indonesia uses the term Payment System Provider (PSP), to cover several parties in the Payment System industry, namely Payment Service Providers (PJP), Payment Infrastructure Operators (PIP) and Commercial Banks.
Meanwhile, PJP is one part of PSP. Simply put, a PJP is a bank or non-bank institution that provides services to facilitate payment transactions for service users.
For businesses, understanding this distinction is important because the payment providers used in their transaction operations may fall under entities regulated through Bank Indonesia’s licensing framework.
This means that when choosing a payment provider, businesses should look beyond the services offered and consider who operates the service, what activities it conducts and whether those services fall within the scope of its license.
Why Payment Provider Licensing Is Essential for Businesses
A license is one way to determine whether a payment provider operates within the licensing framework established by the regulator. Bank Indonesia has a licensing mechanism and a list of licensed institutions for payment system activities.
For businesses, this information can be used as a basis before choosing a payment provider. Therefore, licensing is not only information on company legality, but can also help businesses understand the capacity and scope of payment services that can be provided.
How Can You Check a Payment Provider’s License?
Businesses do not need to guess whether a payment provider has a license. This information can be verified through official Bank Indonesia channels, including the list of licensed institutions for payment systems and rupiah currency management.
Before choosing a provider, businesses can do a few simple checks:
- Search for provider's business entity name on Bank Indonesia's official list.
- Check its licensing status to ensure the provider is listed as a licensed institution.
- Look at the types of activities or services covered in the license and match them with business needs
- Compare this information with the services offered by the provider through its official website or channels.
This approach helps businesses not stop at the question “Is this provider licensed?”, but continue to a more relevant question: “Are its license and scope of services suitable for my business needs?
How About DOKU's License?
For example, DOKU is a licensed fintech payment company and a Category I Payment Service Provider (PJP), which includes:
- Payment Gateway
- Remittance
- E-Money
- E-Wallet
- QRIS
For businesses, information regarding this scope can serve as a reference to match payment needs with the services provided by DOKU. So, in addition to looking at the number of payment methods or features available, businesses can also understand the licensing basis and scope of activities of the provider.
Besides Licensing, Pay Attention to This When Choosing a Payment Provider
Licensing is one important aspect, but the process of choosing a payment provider does not stop there. After verifying its licensing status and scope, businesses can evaluate other factors that are directly related to their operational needs.
Here are several aspects to consider before making a decision:
1. Payment Methods and Service Coverage
Choose a provider whose services align with your business transaction needs. Review the payment methods your business requires, such as credit/debit cards, virtual accounts, e-wallets, QRIS, or PayLater, and check whether they are available through a single provider.
If your business has specific requirements, such as recurring payments, refunds, payment links, or cross-border payments, make sure these needs are supported as well.
For instance, DOKU provides more than 45 payment methods and a range of payment acceptance solutions through integrated and non-integrated options, making it suitable for various business scales, from medium-scale businesses to enterprises.
2. Experience and Capabilities
Consider the provider’s experience and track record in supporting businesses. Some factors to look at include how long the provider has been operating, the range of businesses it serves, its ability to develop solutions in response to technological developments, and the availability of customer support to help businesses manage their payment operations.
These factors can provide an indication of the provider’s capabilities in responding to evolving payment needs.
DOKU, for example, has spent more than 18 years developing payment acceptance solutions for businesses across various industries. This experience can be one reference point for understanding how a payment provider has adapted to changes in technology and evolving payment needs.
3. Ability to Support Business Growth
Consider your business’s long-term needs, not just its current requirements. Look at whether the provider offers services that can scale alongside your business, such as additional payment methods, API integration, and support for expansion into new markets or business models.
This can help businesses avoid having to switch providers as their payment requirements become more complex.
With a range of payment services and integration options, DOKU can support businesses from accepting digital payments to managing more complex transaction needs. For businesses, this can be an important consideration in choosing a payment provider that remains relevant as their transaction requirements evolve.
By considering these factors, businesses can evaluate payment providers more comprehensively, starting with their licensing status and service scope, then looking at their capabilities to support day-to-day operations and long-term business growth.
Ultimately, a payment provider is part of a business’s transaction infrastructure. Understanding who operates the service, verifying its licensing status, and matching its service scope with your business needs can therefore be an important first step before making a choice.
