Rise of Digital Payment in Indonesia
19 July 2021
Spire Consultant Puspa Citra Anjani shares her insights on the flourishing digital payment market in Indonesia with TechnoBusiness.
Indonesia is the world’s largest and the fastest growing digital economy, with more than 180 million Internet users recorded in 2020 and 100 million new users projected by 2024. This growth is due to a shift in consumer behaviour, increased smartphone ownership and expanded access to the Internet.
Digital payment transactions grew over 41% in 2019 to reach more than US$14 billion in 2020, and is expected to increase by US$50 billion by 2025. Puspa shares that the rise of digital payment is directly linked to the increase in literacy of Indonesians. The Covid-19 pandemic has also contributed to its growth as people are encouraged to use touchless payment methods during the implementation of large-scale social restrictions (PSBB).
Several digital payment services are available in Indonesia, such as e-wallet, e-money, QRIS, remittance and payment gateway. From the list, e-wallet is the second most used payment methods, with its popularity soaring. ShopeePay, one of Indonesia’s largest e-commerce sites, holds the biggest e-wallet market share at 29%.
With the growing Internet penetration and smartphone accessibility, and the Indonesian government’s support to provide a secure digital payment ecosystem, the digital payment market is projected to grow rapidly and create new payment innovations.
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