Three-way Payments in India: Analysis of Online Payment Methods and Market Share in Indonesia: Bank Transfers, ATM Transfers, Internet Banking and Cash Payments are Mainstreams

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In Indonesia, online payment methods mainly cover internet bank transfer, bank transfer, e-wallet and cash payment, with respective shares of 27% for internet banking, 39% for bank transfer, 25% for cash and 5% for e-wallet. one third of the Indonesian population has a bank account, with the four largest banks accounting for 90% of the market share. 90%.However, credit card penetration in Indonesia is only 2%, making bank transfers, ATM transfers, internet banking and cash payments the most popular payment options for online shopping.

1. ATM transfers: 94% of Indonesians use bank transfers as the primary method of payment for online purchases. Consumers initiate a transaction online and then visit an ATM to complete the payment process. Indonesia has three major ATM networks, Primo and Alto, with more than 100,000 ATMs for making online payments, bill payments, etc., providing a reliable payment channel.

The ATM transfer payment process includes the following steps:

- Consumers choose ATM payment methods.

- Enter your name and click "Next".

- The ATM payment page will display the payment code, IDR account number and invoice number.

1. Enter the PIN code.

2. Select "Transfer", or if you are using another bank's ATM, select "Other" and then "Transfer".

3. Select "Other bank account".

4. Enter the bank code (013) and enter the 16-digit payment code 88565 as the target account and select "Correct".

5. Enter the exact amount of the transaction. An incorrect transfer amount will result in a failed payment.

6. Confirm that the bank code, payment code and transaction amount are correct and select "Correct".

7. Completion of the transaction.

2. Cash at Convenience Stores: Cash at convenience stores is one of the fastest growing payment channels in Indonesia. After purchasing goods online, consumers go to one of the many convenience stores (e.g. Alfa Midi, Alfa or DAN+DAN shops) to complete the cash payment at the counter.

Customers do not need to pre-register or log in, nor do they need a bank account, credit card or e-wallet; any customer can complete an online payment just like a bank transfer. Cash payments at retail shop counters are also non-refundable.

The convenience store cash payment process includes:

- After selecting the convenience store payment method, the page will automatically generate and display the payment code, IDR account number and invoice number.

1. The customer notes down the payment code and goes to the nearest Alfa Midi, Alfa or DAN+DAN shop.

2. Inform the cashier of the payment.

3. If the cashier is unsure, they can open an electronic transaction terminal instruction and select "Menu 2" or search for a menu option.

4. Have the cashier press the "Shift" and "?" keys. keys, then enter and click "Confirm" to continue.

5. Have the cashier select "Option 1".

6. The cashier will ask for a payment code. After providing the payment code, the cashier will confirm the customer data. Payment is made to the cashier based on the transaction amount.

7. Use a receipt as proof of payment. The merchant will be notified directly of the payment status.

8. Completion of the transaction.

3. E-wallets: E-wallets support multiple payment channels, including online bank transfers, bank transfers and convenience store payments. The e-wallet can be used directly for the purchase of physical goods under the regulation of Bank Indonesia's e-money.

The eWallet payment process includes:

- The customer selects the e-wallet payment method and will be redirected to the DOKU e-wallet page.

- The merchant logs into their eWallet account and the page redirects to the order details.

- The merchant enters the information required to complete the payment and clicks "Confirm" to finalise the transaction.

4. Internet bank transfers: This method supports transfers from several major local banks in Indonesia, such as Bank Tbk.

The online bank transfer payment process includes:

- The customer selects the payment method of internet bank transfer and the page will automatically generate and display the payment code, IDR account number and invoice number.

1. Enter the PIN code.

2. Select "Transfer". If you are using another bank's ATM, select "Other" and then "Transfer".

3. Select "Other bank account".

4. Enter the bank code (013) and enter the 16-digit payment code 88566 as the target account and select "Correct".

5. Enter the exact amount of the transaction. An incorrect transfer amount will result in a failed payment.

6. Confirm that the bank code, payment code and transaction amount are correct and select "Correct".

7. Completion of the transaction.

For payments through other banks:

1. Users log in to their Internet banking accounts.

2. Select "Transfer" and then "Other Bank Account". Enter the bank code (013) as the target account.

3. Enter the correct amount for the transaction.

4. Enter the target amount using your 16-digit payment code 88565.

5. Confirm that the bank code, payment code and transaction amount are correct and select "Correct".

6. Completion of the transaction.