What is a national payment gateway?

28 Feb 2023 By PAYCEC

The National Payment Gateway (NPG) is a payment system ecosystem that connects various electronic payment or cashless transaction instruments supplied by domestic banks.

Indonesia's retail payment system is complicated and divided. As a result, through the National Payment Gateway, Bank Indonesia has developed an integrated and connected national retail payment ecosystem (NPG).

NPG was deliberately developed to allow government programs such as cashless social aid program (bansos) disbursements, person-to-government (P2G) transfers, toll road and transportation sector electronification, and to boost national e-commerce and financial inclusion.

The goal of NPG policy is to: 

• Create interconnected and convergent infrastructure for mutual use in order to achieve optimal interoperability.
• Increase the role of the domestic payment system business by utilizing the most recent domestic infrastructure technology and innovation to provide the public with the products and services they require.
• Increase the availability of retail payment system products and services to promote cashless transactions and financial inclusion.
• Reduce settlement risk at Bank Indonesia by improving security, client protection, and settlement.
• Standardization, switching, and service tasks are provided by payment system institutions.
• Interconnected switching will enable national payment system interoperability, resulting in a more efficient, secure, and dependable national payment system.