Cards and payment industry infrastructure in Indonesia - 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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Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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