As the number of e-wallet players in Indonesia surges amid the vast market opportunities, bigger players have begun extending the competition beyond payments
April 09, 2021 | Janine Marie Crisanto- Local fintech players are currently dominating Indonesia’s digital payments space
- Bank and non-bank players are collaborating to amass scale in the midst of competition
- Indonesian e-wallet players are looking beyond payments to expand their ecosystems and create a bigger economic impact
Indonesia has always been ripe for digital disruption in financial services. The country has a huge population of 270 million and more than 50% are still unbanked due to geographical and infrastructural barriers. Nevertheless, Indonesia is one of the leading countries in the region in terms of internet and mobile penetration with over 60% of the population equipped with a smartphone according to a Google study.
In the face of restrictions and lockdowns brought about by the COVID-19 pandemic, Indonesia has seen a surge in digital adoption among consumers and an accelerated growth of both digital payments and e-commerce platforms. According to Bank Indonesia (BI), the value of electronic money transactions reached IDR 201 trillion ($13.95 billion) in 2020, growing by 38.62% from IDR 145 trillion ($10.07 billion) in 2019. As of January 2020, the largest driver of digital transactions is retail at 28%, followed by transportation (27%), food order (20%), e-commerce (15%), and bill payments (7%).
The rising digital payments transactions reflect the evolving digital financial literacy of the Indonesian population. It also demonstrates the increasing acceptance of fintech and e-commerce services in the country. BI foresees that the uptake of digital transactions will continue with e-commerce and e-payments growing by 33.2% and 32.3%, respectively in 2021.
Local e-wallet players are currently dominating Indonesia’s digital payments space
With this opportunity, the...
Categories:
Keywords:Contactless, E-wallets, E-Commerce, Financial Inclusion
As the number of e-wallet players in Indonesia surges amid the vast market opportunities, bigger players have begun extending the competition beyond payments
April 09, 2021 | Janine Marie Crisanto- Local fintech players are currently dominating Indonesia’s digital payments space
- Bank and non-bank players are collaborating to amass scale in the midst of competition
- Indonesian e-wallet players are looking beyond payments to expand their ecosystems and create a bigger economic impact
Indonesia has always been ripe for digital disruption in financial services. The country has a huge population of 270 million and more than 50% are still unbanked due to geographical and infrastructural barriers. Nevertheless, Indonesia is one of the leading countries in the region in terms of internet and mobile penetration with over 60% of the population equipped with a smartphone according to a Google study.
In the face of restrictions and lockdowns brought about by the COVID-19 pandemic, Indonesia has seen a surge in digital adoption among consumers and an accelerated growth of both digital payments and e-commerce platforms. According to Bank Indonesia (BI), the value of electronic money transactions reached IDR 201 trillion ($13.95 billion) in 2020, growing by 38.62% from IDR 145 trillion ($10.07 billion) in 2019. As of January 2020, the largest driver of digital transactions is retail at 28%, followed by transportation (27%), food order (20%), e-commerce (15%), and bill payments (7%).
The rising digital payments transactions reflect the evolving digital financial literacy of the Indonesian population. It also demonstrates the increasing acceptance of fintech and e-commerce services in the country. BI foresees that the uptake of digital transactions will continue with e-commerce and e-payments growing by 33.2% and 32.3%, respectively in 2021.
Local e-wallet players are currently dominating Indonesia’s digital payments space
With this opportunity, the...
Categories:
Keywords:Contactless, E-wallets, E-Commerce, Financial Inclusion
