Indonesia Launches Credit Card to Challenge Visa and Mastercard on August 19

Indonesia’s central bank has opened its Indonesian Credit Card to consumers and businesses, expanding a system previously limited to government entities. The move on August 17 challenges Visa and Mastercard’s grip on the region’s credit card sector. Eight local banks including Bank Mandiri and BCA now issue the card through the QRIS payment network, which processed 12.55 billion transactions worth 1.12 quadrillion rupiah in the first half of 2026.

Why Indonesia built its own credit card network

Visa and Mastercard dominate Indonesia’s credit card market. Bank Indonesia created the Indonesian Credit Card in 2022 for government spending, then expanded it to retail on August 17 as part of an independence day initiative. Acting Governor Destry Damayanti said the move ensures payment innovation supports economic growth while keeping transactions onshore.

How the card works and who can use it

The Indonesian Credit Card uses the QRIS system, a unified QR code payment network. Eight banks issue it: BCA, Bank Mandiri, BNI, BRI, CIMB Niaga, Permata Bank, Bank Mega, and Bank Syariah Indonesia. Users can pay at any QRIS merchant, including internationally. The card launches as digital; physical cards will follow, according to the central bank’s payment policy head.

Scale of Indonesia’s QRIS ecosystem

QRIS has grown rapidly. As of June 2026, the network had 65.77 million users and 44.86 million merchants, 96.68% of them micro, small, and medium enterprises. The first half of 2026 saw 12.55 billion transactions totaling 1.12 quadrillion rupiah. Government credit card use jumped 70% year-over-year in the April-June quarter to 147.8 billion rupiah (S$10.6 million).

What this means for Visa and Mastercard investors

Bank Indonesia said the Indonesian Credit Card will coexist with international card brands, and the public can choose. Visa (V) trades at $364.25 with a Meyka grade of A and a 12-month forecast of $373.73. Mastercard (MA) sits at $574.31, also graded A by Meyka, with a yearly target of $614.38. Both face long-term pressure from domestic alternatives in major Asian markets, though near-term earnings growth remains solid.

Final Thoughts

Indonesia’s domestic credit card system poses a structural challenge to Visa and Mastercard’s regional dominance, though both companies retain strong market positions and analyst support. Investors should monitor adoption rates and transaction volumes as the card expands beyond government use.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.