E-wallet usage in Indonesia
Electronic money and e-wallet payments are the most popular form of digital payments in Indonesia. Given the country's high internet and smartphone penetration rates, it is not surprising that both are so frequently used in Indonesia. Furthermore, since neither a bank account nor a credit card is needed to register for these platforms, unbanked Indonesians can easily follow the trend. As a result, the number of e-money and e-wallet users are higher than other digital payment users that requires a bank account.In Indonesia, there are already more than 48 licensed e-wallet systems operated by domestic companies in the public and private sectors. Indonesia’s most widely used e-wallets in Indonesia such as GoPay and OVO also have the benefit of being supported by super apps. GoPay is a payment service that is integrated into Gojek, the biggest multi-service platform in the nation, while OVO has grown over the years due to its partnerships with Grab, a regional ride-hailing service, and Tokopedia, one of Indonesia’s largest online e-commerce markets. For many consumers, instant cashback rewards and bonus points are among the benefits of using an e-wallet app as a cashless payment method.
Indonesia aims to be a cashless country in the near future
Despite a significant progress in the shift towards cashless, cash is still widely used in Indonesia and half of the Indonesian population still don’t have a bank account. According to a consumer survey conducted in 2022, 45 percent of Indonesian respondents still preferred to use cash for offline payments transactions. Nevertheless, the increasing digital payment transactions represent the population of Indonesia's growing digital financial literacy. It also highlights how widely fintech and e-commerce services are used in the nation. It was forecast that the uptake of the number of digital payment users in Indonesia will continue with e-commerce and mobile payments growing by over 45 percent and 18 percent, respectively in 2027.In line with Indonesia’s G20 Presidency in 2022 and the National Noncash Movement (GNNT), payment digitalization and cross-border payments have become a priority agenda. Since 2021, Indonesia and Thailand connected their digital payments systems. Thai users have been able to scan the Indonesian QR code, also known as QRIS, to make payments to merchants in the archipelago and vice versa. As of May 2023, six Thai banks have connected to the Indonesian QR code or QRIS payment facilitation system. Additionally, The Indonesian government is planning to launch an instant digital payments service and a data exchange platform in the second half of 2024, as the country looks forward to building a complete digital public infrastructure (DPI) ecosystem. By accelerating its digital payment landscape, Indonesia aims to have stronger financial governance and become a cashless society in the next few years.
