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7 Key Differences Between GPN and Visa Cards Highlighted by the U.S. Written on . Posted in -.

7 Key Differences Between GPN and Visa Cards Highlighted by the U.S.

Indonesia’s national payment system has become a focal point in trade discussions between Indonesia and the United States. At the center of the debate are the National Payment Gateway (GPN) and the Quick Response Code Indonesian Standard (QRIS), which have been criticized by the U.S. for allegedly limiting access to American companies like Visa and Mastercard.

The U.S. Trade Representative (USTR), in its National Trade Estimate Report on Foreign Trade Barriers (NTE) 2025, explicitly criticized Indonesia’s domestic payment regulations, calling GPN and QRIS non-tariff barriers that hinder foreign payment firms' dominance in the local market.

Coordinating Minister for Economic Affairs Airlangga Hartarto acknowledged that the issue was discussed during the latest bilateral meetings. The Indonesian government, he said, has been coordinating with Bank Indonesia and the Financial Services Authority (OJK) to explain the direction of the national payment policy.

 

 

Here are the seven key differences between GPN and Visa:

1. Origin and Issuing Institutions
GPN is a national payment system launched by Bank Indonesia in 2017. GPN cards are issued by local banks, and all transactions are processed through domestic switching institutions licensed by BI.
Usage Purpose:

  • GPN: Domestic use only

  • Visa: International use

2. Transaction Scope
GPN is used solely within Indonesia through merchants connected to local switching systems, designed for cost efficiency and financial inclusion.
Visa and Mastercard, by contrast, are accepted in over 200 countries for cross-border transactions.
Merchant Access:

  • GPN: Local merchants only

  • Visa: Accepted worldwide

3. Transaction Fees
Bank Indonesia caps GPN merchant discount rates (MDR) at 0.15%, making it a cost-effective option, especially for MSMEs.
Visa and Mastercard have higher MDRs, ranging from 0.2% to 1% domestically, and more for international transactions.
Fee Comparison:

  • GPN: Lower costs

  • Visa: Higher, varies by transaction type

4. Infrastructure and Switching
All GPN transactions must go through local switching systems. BI prohibits domestic transactions from using cross-border infrastructure to preserve data sovereignty.
Visa transactions use Visa Inc.’s global infrastructure.
Infrastructure:

  • GPN: Local switching

  • Visa: Global network

5. Features and Security
GPN focuses on domestic security and is overseen directly by Bank Indonesia. While features are more limited, user data remains within Indonesia.
Visa offers features like loyalty points, international fraud protection, and travel insurance. However, data may be processed abroad.
Security and Oversight:

  • GPN: National management

  • Visa: Global scale, cross-border data

6. Government Support and Market Share
GPN is backed by the Indonesian government to reduce dependence on foreign payment services and strengthen national systems.
Visa and Mastercard still process significant transaction values in Indonesia, although their global market shares have declined since 2014.
Market Share:

  • Visa recorded US$76.12 billion in transaction value in Indonesia (2023), but global share has decreased.

7. Regulatory Framework and Trade Negotiations
GPN is governed by BI Regulation No. 19/8/2017, limiting foreign ownership in switching institutions to 20%. QRIS is also regulated by BI under Regulation No. 21/2019, making it mandatory for domestic QR transactions.
The U.S. sees these as market access barriers and has officially raised concerns.
Regulation:

  • Governed by BI.

  • Viewed by the U.S. as restrictive.

The contrast between GPN and Visa extends beyond features—it represents a strategic policy to protect Indonesia’s financial sovereignty. While GPN offers cost-effective and controlled local transactions, Visa remains crucial for global use. Despite international pressure, Indonesia is urged to maintain this national system for digital economic independence.