“Several aspects must be fulfilled to obtain a Payment Gateway License, including institutional, capital and finance, risk management, and information system capability.”
Payment gateway is included in Payment Service Provider (“PJP”) as payment initiation and/or acquiring services. Payment gateway must get licensing from Bank Indonesia (“BI”). The provision of payment gateway, including the procedure on how to obtain payment gateway license, are stipulated Bank Indonesia Regulation Number 23/6/PBI/2021 (“PBI 23/2021”).
1. Licensing Category of Payment Gateway
Based on Article 12 PBI 23/2021, licensing category of payment gateway included in Category One and Category Two.
Category One includes activities as below:
- Administration of fund sources;
- Provision of information on sources of funds;
- Payment initiation and/or acquiring services; and
- Remittance services.
Category two includes activities as below:
Provision of information on sources of funds; and
Payment initiation and/or acquiring services.
Article 16 PBI 23/2021 mentioned that the party applying for a PJP Licensing, which include payment gateway, must be Bank or Non-Bank Institution. As for the Non-Bank Institution that apply for a license Category One and license Category Two must be in the form of a Limited Liability Company.
2. Requirement Aspects
The Company that wants to obtain the payment gateway license must fulfil the below aspects:
Institutional;
Capital and Finance;
Risk Management; and
Information system capability.
3. Indonesia Standard Industrial Classification
Indonesia Standard Industrial Classification (“KBLI”) which includes Payment Gateway are KBLI 66411 about PJP. KBLI 66411 includes activities related to the provision of payment services to end users of Payment System services on the front end, covering activities including: displaying information on sources of funds; initiating transactions/acquiring (electronic wallets, acquirers, and payment gateway); issuing payment instruments/accounts; remittance/fund transfer services.
PBI 23/2021 stipulated that for PJP Non-Bank Institution, composition of share ownership at least 15% (fifteen per cent) of its shares and 51% (fifty-one per cent) minimum of its share with voting rights are collectively owned by Indonesian citizens and/or Indonesian Legal Entity. Bank Indonesia’s assessment of the composition of shares with voting rights carried out collectively on each level of ownership up to the ultimate shareholder, with the most extensive voting rights individually owned by domestic parties.
4. Capital in Payment Gateway
Article 24 PBI 23/2021 stipulated that the minimum amount of paid-up capital (initial capital) for payment gateway with licensing Category One is IDR 15,000,000,000 (fifteen billion Rupiah), while for payment gateway with licensing Category Two is IDR 5,000,000,000 (five billion Rupiah).
5. Aspect of the Readiness of Human Resources Needed for Obtaining Payment Gateway License
Aspect of the Readiness of Human Resources or Management Aspects for Obtaining Payment Gateway License for Non-Bank Institution need to be proven by provide the documents as below:
- Statement letter regarding the composition of the Board of Directors (“BOD”), Board of Commissioners (“BOC”), and shareholders of Non-Bank Institutions in accordance with the latest conditions, consisting of names, positions, addresses, accompanied by photocopies of personal identification cards and Taxpayer Identification Numbers (NPWP) of BOD, BOC, and shareholders;
- Statement letter from each member of the BOD, BOC, and shareholders, stating that the person concerned:
- has never been declared bankrupt and/or found guilty of causing a business entity to be declared bankrupt within the last 5 (five) years prior to submitting the application;
- has never been convicted of committing a certain crime based on a court decision that has permanent legal force within the last 5 (five) years prior to submitting the application;
- not listed in the list of bad debts at the time of submitting the application; and
- not included in the national blacklist of drawers of blank checks or demand deposit administered by BI at the time of submitting the application.
- Statement and guarantee letter from the authorized Director, stating that Non-Bank Institutions are not in:
- imposition of sanctions; and/or
- criminal, civil, and/or bankruptcy legal proceedings.
- Organizational structure and job descriptions, authorities, and responsibilities, including units or functions that are responsible for consumer protection, anti-money laundering and prevention of terrorism financing, risk management, internal audit, and compliance.
- The results of the Legal Due Diligence (“LDD”) from an independent legal consultant as stated in the form of a Statement Letter from the legal consultant accompanied by an executive summary/resume of the results of the LDD.
- A statement from the authorized member of the BOD that all licensing documents submitted are correct and complete according to the condition of the company at the time of applying for a permit.
Meanwhile, aspect of the Readiness of Human Resources or Management Aspects for Obtaining Payment Gateway License for Bank need to be proven by provided the documents as below:
- Statement letter from each member of the BOD, BOC, and shareholders, stating that the person concerned:
- has never been declared bankrupt and/or found guilty of causing a business entity to be declared bankrupt within the last 5 (five) years prior to submitting the application;
- has never been convicted of committing a certain crime based on a court decision that has permanent legal force within the last 5 (five) years prior to submitting the application;
- not listed in the list of bad debts at the time of submitting the application; and
- not included in the national blacklist of drawers of blank checks or Demand Deposit administered by BI at the time of submitting the application.
- Statement and guarantee letter from the authorized Director, stating that Bank are not in:
- imposition of sanctions; and/or
- criminal, civil, and/or bankruptcy legal proceedings.
- Organizational structure and job descriptions, authorities, and responsibilities, including units or functions that are responsible for consumer protection, anti-money laundering and prevention of terrorism financing, risk management, internal audit, and compliance.
- The results of the LDD from an independent legal consultant as stated in the form of a Statement Letter from the legal consultant accompanied by an executive summary/resume of the results of the LDD.
- A statement from the authorized member of the BOD that all licensing documents submitted are correct and complete according to the condition of the company at the time of applying for a permit.
Author: Vania Aqilla Cahyaningrum and Oddy Ramadhika Susmoyo
Gaffar & Co., an Indonesian Boutique Law Firm specializing and focusing on commercial law areas e.g. financial technology.
For further queries and information, contact us:
+62 811 877 216 | info@gaffarcolaw.com | www.gaffarcolaw.com
