Why ID Tech Firms are Moving to Zero-Fee, Instant International Payments

Key takeaways

• Indonesian tech firms are increasingly adopting real-time, low-fee or near-zero-fee payment infrastructure to protect margins, improve cash flow and reduce reconciliation complexity.
• ID tech companies are naturally suited to modern payment systems because their strong KYC and AML infrastructure supports transparent, compliant transactions.
• New technologies such as direct bank-to-bank APIs, tokenised settlement models and AI-driven treasury routing are reshaping global money movement.
• API-first payment platforms are becoming preferred partners for Indonesian tech firms seeking faster, more cost-efficient international transfers.

Indonesia is no longer just the “next big thing”. It is already one of Southeast Asia’s most dynamic digital economies.

Home to more than 280 million people and one of the fastest-growing digital markets in the region, Indonesia has produced regional technology leaders and a thriving startup ecosystem. Companies like GoTo, Traveloka and Bukalapak demonstrate how Indonesian tech firms are expanding across borders and competing on a global scale.

But as these ID tech firms scale internationally, they face a familiar operational challenge: the cost and complexity of moving money across borders. Indonesian tech companies frequently work with global vendors, international clients and distributed teams.

This is why many are shifting toward faster, lower-cost international payment infrastructure.

With systems such as FedNow in the United States and SEPA Instant in Europe accelerating settlement domestically, and with new bank-to-bank networks reducing cross-border friction, the direction is clear. Payments increasingly move at the same speed as digital platforms.

Note: Zero-fee here refers specifically to the absence of transfer or intermediary fees. FX spreads or other applicable charges may still apply depending on the provider.

In this blog post, we explore why Indonesian tech firms are adopting instant, low-fee international payments and what this shift means for the future of cross-border business.

The problem with legacy cross-border rails

Traditional cross-border payment systems were designed decades ago for a very different financial environment. They still function, but they were never built for digital-first companies that operate in real time.

And that is where the problem begins.

The cost of complexity

When an Indonesian tech firm sends or receives an international wire, the funds rarely travel directly from Bank A to Bank B. Instead, the payment typically moves through a chain of intermediary banks. Each institution along the way may deduct processing fees.

On top of that, foreign exchange margins are often embedded within the rate itself.

In practice, companies can lose between 1.5% to 3% of the transaction value to FX markups and intermediary deductions.

At scale, these costs add up quickly.

• A $50,000 vendor payment could lose $750 to $1,500.
• Cross-border payroll for remote teams can exceed budget projections.
• SaaS companies collecting international subscriptions may see margins shrink without clear visibility into why.

Finance teams often only see the final amount once the payment arrives. As a result, pricing strategies and cost forecasting become harder to optimise.

The verification delay

Tech companies operate in environments built around immediacy. Platforms verify users in seconds. Notifications are triggered instantly when an action is completed.

Now compare that to traditional international payments.

Nothing undermines customer confidence faster than a mismatch between product experience and payment infrastructure.

If a company provides instant identity verification but payment settlement takes three to five business days, the gap becomes visible to customers and partners.

In some cases, customers assume the delay originates from the platform itself. They see a modern interface and expect equally modern payment infrastructure behind it.

When funds take days to arrive, it creates friction—even when the delay sits within legacy banking rails.

The reconciliation issue

Perhaps the most overlooked issue with legacy cross-border payments is the administrative burden they create for finance teams.

A common example is the short-pay problem.

You invoice a client for $10,000. The client sends $10,000. But by the time the payment reaches your account, only $9,850 arrives because intermediary banks have deducted their fees.

For finance teams, this creates immediate reconciliation questions.

Was the client underpaying?
Did the bank deduct fees along the route?
Is another payment still pending?

Teams often need to manually investigate, document and reconcile the missing difference.

Why ID tech is the perfect match for zero-fee rails

Indonesian tech companies are uniquely positioned to benefit from modern payment infrastructure. In many ways, their operating models already align with how modern payment rails function.

Built-in compliance

One of the main drivers of cost in cross-border payments is perceived risk.

Banks and intermediaries price uncertainty into their services. If they lack visibility into the sender, the recipient or the purpose of the transaction, they often compensate through higher FX spreads, compliance checks and intermediary fees.

Indonesian tech firms typically operate with far greater data transparency.

Because these companies already manage robust Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, they maintain structured, verified user data.

This type of data helps payment providers reduce uncertainty and support compliant transactions. As a result, tech firms are often well suited for direct bank-to-bank payment networks that rely on transparency and structured information.

Data-rich transactions

Traditional international wires often carry limited transaction information. A short reference field, basic sender details and a brief payment description may be all that accompanies the transfer.

Finance teams must then manually match incoming payments with invoices or internal records.

Modern payment infrastructure built around standards such as ISO 20022 supports far richer data structures.

Payments can include detailed references, invoice data and customer identifiers.

For Indonesian tech firms, this means payments can be linked directly to user accounts, subscriptions or platform activity. Instead of reconciling payments after they arrive, transactions can be matched automatically.

Subscription-based models

Many Indonesian tech companies operate SaaS, API or marketplace models where revenue comes from high-volume transactions.

While margins may be healthy overall, individual transaction values can be relatively small.

In this environment, fees matter.

If 1.5% to 3% is deducted from every cross-border payment, margins gradually shrink. Across thousands or millions of transactions, even small fees compound over time.

Lower-cost payment infrastructure helps protect those margins while also improving settlement speed and cost visibility.

Strategic benefits of the move

In an era where we can stream high-definition video instantly across the globe, waiting days for money to move feels increasingly outdated.

Moving toward faster, lower-cost payment infrastructure is not just a technical upgrade. It is a strategic operational shift.

Here is why the transition is giving Indonesian tech firms a competitive edge.

Optimised cash flow

One of the most immediate advantages of faster international payments is improved control over working capital.

Traditional cross-border transfers often move through the global SWIFT network, where funds can remain in transit for several days before reaching the recipient account.

During that time, capital is effectively idle.

Faster payment infrastructure reduces these delays, making funds available sooner for operational use.

For finance teams, this translates into faster vendor payments, more predictable budgeting and improved liquidity management.

Global scalability

Expanding into new international markets often comes with higher operational costs.

Traditional banking fees create a cost floor that makes international expansion harder to justify, especially when transaction fees accumulate across large payment volumes.

Lower-cost payment infrastructure reduces these barriers.

By removing multiple intermediary layers, companies can maintain more predictable payment costs while operating across borders.

Competitive edge

For platforms operating gig economy models—such as ride-hailing, delivery or freelance marketplaces—the speed of payments can directly influence worker retention.

Providing workers the ability to access earnings quickly creates a stronger user experience and builds trust in the platform.

A platform that settles payments faster may become the preferred option for workers compared with competitors that rely on slower batch payment cycles.

The technology driving the change

Indonesian tech companies operate in an environment where business transactions are expected to move at the same speed as digital communication.

Several technologies are enabling this shift in global payments.

Direct bank-to-bank networks

The payments industry is increasingly moving toward Pay-by-Bank or account-to-account (A2A) transfers.

Instead of routing payments through card networks, which introduce interchange fees and additional intermediaries, A2A transfers move funds directly between bank accounts.

These networks often rely on Open Banking APIs to connect financial institutions and support faster settlement.

Tokenised or stable-value settlement models

Digital settlement infrastructure is evolving rapidly. 

Some payment ecosystems are exploring tokenised assets or stable-value digital instruments to facilitate faster cross-border settlement. Bank Indonesia is working on issuing digital securities backed by government bonds. It describes this move as Indonesia’s version of a stablecoin, built on top of its central bank digital currency system.

Stablecoin-based payment channels offer the possibility of near-instant global transfers. Transactions can be completed in seconds rather than days, while exposure to exchange rate fluctuations during transit is minimised.

AI-driven treasury optimisation

Artificial intelligence is increasingly being applied to treasury and payment routing.

Advanced treasury platforms can evaluate multiple payment routes in real time.

By analysing factors such as transaction value, destination country, FX rates and network fees, these systems can select the most efficient settlement option for each payment.

Final thoughts

The way money moves should match the speed of the products Indonesian tech companies are building.

Some businesses are still relying on legacy international wire transfers simply because they are familiar and widely accepted. However, these systems often come with hidden FX spreads, intermediary deductions and settlement delays that reduce efficiency.

Continuing to use slow cross-border payment rails is similar to passing a slow tax to customers and partners. The business either absorbs the cost of delay or allows it to affect user experience and cash flow.

It helps to move away from traditional bank-heavy payment services and look for modern, API-first partners like Instarem. 

These platforms are built for the cross-border, high-volume needs of tech companies. They can offer faster settlement, better FX rates and simpler bulk payment processing without the slow steps common in legacy banking systems.

Ask your team: ‘If we had to move $500,000 across the ocean in 30 seconds, could we?’ If the answer is no, it’s time to build the infrastructure that lets you say yes. Sign up now.

FAQs on why ID tech firms are moving to zero-fee, instant international payments

Why are traditional bank transfers so expensive for ID tech firms?

Traditional cross-border payments usually operate through the SWIFT correspondent banking network. In this system, money does not move directly between two banks. It passes through intermediary institutions, and each one may charge a processing fee.

When combined with FX spreads, companies can lose approximately 1.5% to 3% of the transaction value before the money even reaches the recipient.

Are zero-fee payment rails completely free for businesses?

Not necessarily. “Zero-fee” refers to the removal of intermediary transfer charges, not a complete absence of all costs. FX spreads, platform service fees or premium processing features may still apply depending on the provider.

Can instant cross-border payments handle high transaction volumes?

Yes. Many API-based payment platforms are designed to support large transaction volumes and batch payments, making them suitable for SaaS, marketplace and gig-economy platforms.

What is the biggest risk when switching payment infrastructure?

The main challenge is operational transition. Businesses should plan integration, testing and stakeholder coordination carefully to avoid disrupting existing payment flows.

Is this only relevant for large ID tech companies?

No. Startups and mid-sized Indonesian tech firms can benefit as well, particularly if they process frequent international payments or work with global partners.