The reason is that the government is rumored to be introducing and testing MLFF at the end of this year, where next year the contactless payment system will begin to be fully implemented.
The use of MLFF is believed to provide a number of benefits, the main of which is minimizing vehicle transition times at toll gates, so that it is expected to eliminate queue times to zero seconds.
Nevertheless, the transition to MLFF is believed to have a significant impact on the banking electronic money business.
The reason is, since electronic money has become the main payment system for toll roads, these types of transactions dominate the total banking electronic money transactions.
Bank acknowledges impact of transition to MLFF
PT Bank Rakyat Indonesia (Persero) Tbk or BRI for example. The state-owned bank admits that the discourse on changing the toll road payment system will have a significant impact on the performance of the company’s electronic money business, BRIZZI.
The reason is, BRI Corporate Secretary Aestika Oryza Gunarto said, the types of transactions for toll payments and transportation dominate the total BRIZZI transactions.
“(The switch to MLFF) will certainly affect BRIZZI’s performance, considering that currently use on toll roads and transportation dominates BRIZZI usage,” he said, to Kompas.com, Thursday (19/5/2022).
The high portion of toll payment transactions and transportation modes also boosted BRIZZI’s business performance, where in the first quarter of 2022 BRI recorded a total electronic money transaction of Rp 1 trillion.
Similarly, EVP Secretariat & Corporate Communication of BCA, Hera F. Haryn, admitted that toll road payments are one of the largest types of electronic money transactions, namely Flazz.
Just so you know, the largest private bank noted, the frequency of Flazz transactions reached 207 million transactions until April 2022.
“The company will study as much as possible the space for this policy to be committed to providing added value and optimal services for all customers and the community,” he said.
Support the government’s decision
Although the transition to MLFF will have an impact on the performance of banking electronic money, Hera ensured that the company fully supports the government’s plan.
“In principle, BCA as a national bank is committed to supporting the policies of the government, regulators and banking authorities, one of which is related to the discourse on the transition of e-toll to a contactless payment system as an official means of payment for toll roads,” he said.
The same thing was conveyed by another electronic money provider bank, PT Bank Mandiri (Persero) Tbk.
Bank Mandiri SVP Transaction Banking Retail Sales Thomas Wahyudi said the company will always fully support the government’s initiatives in innovating to develop new payment methods for the community.
“The MLFF initiative will have a direct impact on the specific use of Mandiri e-Money on toll roads,” he said.
However, Thomas is optimistic that e-Money transactions will remain high, in line with the wider public acceptance of electronic money transactions.
According to him, currently e-Money is not only used for toll road payments, but also payments for transportation, parking, and large retail merchant networks.
“We still believe that people’s needs and fast and easy electronic money transactions will remain high,” he said.