Market Research Reports - Ken Research Indonesia Bill Payment Market Research

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