Evolution in cards and payment industry infrastructure in Indonesia along with regulations encourages cashless payment options: Ken Research


The debit card transaction at ATM for cash withdraw is higher compared to the transactions at the merchant POS terminals.

The leading players in Indonesia’s debit cards market are Bank Rakyat Indonesia, Bank Central Asia, Bank Negara Indonesia and Bank Mandiri. the leading players in Indonesia’s credit cards market are Bank Rakyat Indonesia, Bank Central Asia, Bank Negara Indonesia, Bank Mandiri, HSBC and Citibank.

The frequency of credit card use has slowly increased in the recent years.

Majority of the rural population in Indonesia prefer cash over cards due to negligible awareness in electronic payments. Many of them do not hold a bank account and very few have limited access to banking infrastructure. Indonesian government and banks have taken initiatives to bring the unbanked population into the formal banking system and introducing payment cards which were readily accepted. Pay-later card or credit card market in Indonesia is still in the budding phase with very less penetration rate.  Consumers’ annual income plays a major role for credit card eligibility and it is one of the major reasons for the low penetration.

The cards and payment market in Indonesia include all debit cards, credit cards and charge cards. The payment instruments are cash, cheques, and payment cards. The banks adopted various strategies to market debit, credit and charge cards within the country. Credit transfers and cards are the traditional payment methods in Indonesia and consumers prefer such mode of e-commerce payments along with alternative payments such as digital and mobile wallets. The leading banks in Indonesia’s cards and payment sector are Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Central Asia, Bank Mandiri, Bank Danamon, CIMB Niaga, Bank Mega, Visa, Mastercard, American Express, and JCB.

According to the study “The Cards and Payments Industry in Indonesia: Emerging trends and opportunities to 2021”, the ever increasing Indonesia’s population has encouraged the use of payment cards for their spending over the recent years. The increase in Indonesia’s GDP per capita is expected to increase the scope of payment cards use over the coming years. Indonesia’s e-commerce growth is affected by the growing young population, the increasing online retailers, various payment methods, and rising customer confidence in e-commerce transactions.

Indonesian consumers are adopting contactless payments and Visa has launched its contactless service Visa payWave. This payment service enables Visa card holders to make contactless transactions without a PIN for transactions. Bank CIMB Niaga, Bank Tabungan Pensiunan Negara, UOB Indonesia, and Bank Mandiri adopted Visa payWave technology for their consumers card payments. Indonesia’s central bank is Bank Indonesia that provides security of payment systems to build customer confidence in payment cards. It has also made it a mandated to adopt six-digit PINs for debit and ATM cards, instead of four-digit PINs.

Indonesia’s demographic and economic development over the recent years has exhibited a potential rapid shift from cash based payments to alternative payments and also through mobile payments. Indonesians are price conscious and are easily attracted by any promotions and discounted products. Promotions and discounts are used as marketing tools to promote credit cards. The increasing consumers spending limit is a major factor affecting the payment options. The overall card payment adoption rate is promising in Indonesia and mobile payment systems has become the most widely available option with the launch of Go-Pay, T-Cash, and the e-wallet services. The future of cards and payments industry in Indonesia is very healthy and will continue growing because many consumers are utilizing financial cards as their payment options. Also the cards and payment industry infrastructures are developed throughout Indonesia and new regulations are encouraging the cashless payment options.

Key Topics Covered in the Report:

Indonesia Bill Payment Market Research

Indonesia Money Remittance Industry

Alternative Payment Methods in Indonesia

Indonesia Cards and Payments Industry Trends

Consumer Payment Industry Indonesia

Indonesia Credit Card Industry Analysis

Indonesia Plastic Money Market

Indonesia Credit Cards Market Research

Indonesia Cards and Payments Market Research Report

M-Commerce Market Indonesia

Ecommerce Payment Industry Indonesia

Indonesia Payment Industry

Wallet Payment Market Indonesia

Plastic Card Money Indonesia

P2P Payments Indonesia

Online Payment Channels Indonesia

Debit Cards Market Indonesia

Credit Card Demand in Indonesia

Credit Card Demand Future Outlook Indonesia

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Ken Research

Ankur Gupta, Head Marketing & Communications