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Purpose

This paper aims to examine the advancement of the Quick Response Code Indonesian Standard (QRIS) as a unified cashless payment system in Indonesia. The analysis focuses on its business model, digital ecosystem, challenges within Indonesia’s cashless payment landscape and strategies for fostering cohesion and expansion.

Design/methodology/approach

This study uses a two–sided market ecosystem framework to analyze the advancement of QRIS in two stages. In the first stage, a two–sided business market model for QRIS and its ecosystem is constructed using the value exchange network (VEN) framework. In the second stage, the analysis focuses on the two-sided market model as a basis for discussing QRIS’s business model, sustainability and expansion strategies. Additionally, the business ecosystem model is used to examine the roles of each stakeholder, system sustainability and potential growth strategies.

Findings

QRIS was introduced to streamline digital payments by allowing merchants to accept all payment methods through a single, unified quick response (QR) code. This innovation represents a significant milestone in advancing cashless transactions across Indonesia. While cash remains the dominant payment method for most Indonesians, QRIS has experienced rapid adoption due to its efficiency, simplicity and interoperability across different payment platforms.

Practical implications

This paper proposes a methodological approach for analyzing the evolution of digital payment systems using the VEN framework, offering a structured lens to examine business ecosystem dynamics.

Originality/value

This study examines the development of QRIS through the framework of the digital business ecosystem, evaluating its transformative impact on Indonesia’s digital payment landscape. The paper investigates key strategies for expanding the QRIS ecosystem while critically analyzing the challenges hindering its widespread adoption. Additionally, the research discusses theoretical and practical implications, along with limitations that provide avenues for future studies in digital payment ecosystems.

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