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Indonesia e-wallet transaction to reach $18.5 billion in 2021 amid fierce competition

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...

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Categories:

Keywords:Contactless, E-wallets, E-Commerce, Financial Inclusion


Indonesia e-wallet transaction to reach $18.5 billion in 2021 amid fierce competition

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...

Please login to read the complete article. If you already have an account, you can login now or subscribe/register.

Categories:

Keywords:Contactless, E-wallets, E-Commerce, Financial Inclusion


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