THE EFFECT OF MERCHANT DISCOUNT RATE AND SETTLEMENT FEE ON THE ADOPTION OF QRIS AMONG POTENTIAL USER AS A PAYMENT OPTION

QRIS (Quick Response Code Indonesian Standard)QRIS is a digital payment system using a QR code which was created and standardized by Bank Indonesia. With QRIS, consumers only need to accept one QR code which is compatible with all digital payment applications, therefore, cashless payments become more convenient for businesses. MDR (Merchant Discount Rate)MDR is a discount fee incurred to a merchant as a result of each transaction done using QRIS. As of now, the general MDR rate stands at 0.3% of the total transaction amount for general merchants. However, for some sectors like education and community social activities, Bank Indonesia applies a 0% MDR policy which is free of charge. Settlement FeeSettlement fee is the extra charge imposed by penyedia jasa sistem pembayaran (PJP) to settle QRIS transaction funds to the merchant account. This fee is not tightly controlled by Bank Indonesia and therefore is at the discretion of each internet payment service provider. In most cases, this fee is between IDR 500 and IDR 1,000 per transaction, or capped at IDR 10,000 per day for non-bank merchants.