E-payment systems are taking off—or rather have already done so—in the Southeast Asian country of Indonesia. According to The Jakarta Post, there are approximately 38 e-wallet applications now registered with Bank Indonesia, the country’s central bank. In 2018, the apps facilitating transactions worth a total of $1.5 billion. That figure is projected to increase to $25 billion by 2023.
Citing statistics from iPrice Group and App Annie, The Jakarta Post writes:
“The Indonesian fintech industry is currently dominated by local players. According to App Annie’s Q2 2019 data, the top five e-wallet apps based on monthly active users from both Google Play Store and iOS are GoPay, OVO, DANA, LinkAja and Jenius.”
Throughout the month of February, the value of transactions serviced by GoPay totaled $6.3 billion. Unsurprisingly, millennials account for the overwhelming majority of Indonesia’s e-wallet app users: “According to a study by Jakpat Mobile Survey Platform and DailySocial, 74.6 percent of e-wallet app users in Indonesia are 20 to 35 years old.” That says much about the future of payment systems, not only in Indonesia but throughout the developed world.
Indeed, over the past two years the number of internet-owned e-wallet apps in Indonesia has gone up by 50 percent. “Such growth was encouraged by the Financial Services Authority (OJK) in a bid to improve the country’s economic development, as three-quarters of 250 million Indonesian people reportedly still have no access to basic financial services.”
The Indonesian government is becoming increasingly involved in the promotion and growth of the country’s fintech industry, reflecting its economic potential. For example, per The Jakarta Post:
“In May, the government issued QRIS (Quick Response Indonesia Standard) as a standardization effort to increase the use of cashless payments, as it is found to be a convenient card replacement solution to reach 65 million micro, small and medium enterprises (MSMEs) across the country.”