Cashfree Payment Gateway：Discovering Indonesia丨PhotonPay Adds Several Local Payment Methods in Indonesia

Indonesia, the world's fourth most populous country and ASEAN's largest economy, has a vibrant digital economy with huge potential. In recent years, Chinese companies have made significant inroads into this market, with significant growth in the e-commerce, gaming and entertainment industries. Naturally, Indonesia has become a key stop for these companies in their global expansion.

Why did you choose to expand to Indonesia in 2024?

With a strong demographic dividend, a stable political environment and growing ties with China, supported by a series of favourable policies such as RCEP, Indonesia is rapidly emerging as one of the most attractive destinations along the Belt and Road.

01. Indonesia's demographic dividend is one of its most significant advantages. According to the latest survey data, as of November 2022, Indonesia's total population reached 270 million, the fourth largest in the world. 70% of the total population is aged 15-64, and according to KUPU, the labour force population is more than 60%.

02. The high penetration of mobile Internet in Indonesia provides a solid foundation for Internet recruitment. Data shows that Indonesia has 15 million active Internet users, accounting for 56% of the total population, of which 14 million are mobile active Internet users.

03. As the largest economy in South-East Asia, Indonesia's GDP surpassed that of all South-East Asian countries in 2022, even surpassing that of Thailand and Singapore combined.

According to official data from the World Bank, Indonesia's GDP in 2022 was close to US$1.32 trillion, a year-on-year growth of 5.311 TP3 T. The latest data shows that Indonesia maintained a rapid growth rate of more than 51 TP3 T in the first half of 2023, returning to the pre-epidemic level.

04. At the recently concluded third Belt and Road Summit on International Cooperation, the leaders of China and Indonesia had reached a consensus on cooperation in such areas as the digital economy, green development, new energy vehicles and batteries, photovoltaics, agriculture, medicine and tourism.

05. Indonesia's industrial structure is dominated by services. According to the Southeast Asia Internet Economy Report 2023, jointly published by Google, Temasek and Bain, the GMV of Southeast Asia's digital economy is projected to grow at a CAGR of 16% to reach US$2.95 trillion by 2025.

It is foreseeable that China's well-established digital economy industries in cross-border e-commerce, fintech and video games will find ample opportunities in Indonesia.

What are the local payment options in Indonesia in 2024?

The online payment industry in Indonesia is growing rapidly, thanks to the popularity of smartphones and the expansion of Internet coverage. Several international and local companies are competing fiercely in this field, driving innovation in payment services. Major online payment applications in Indonesia include GoPay, OVO, DANA, etc., which have changed the way people live by providing simple and secure payment methods.

According to the Southeast Asia Internet Economy 2023 report, the use of online payments for individuals and businesses in Southeast Asia is increasing, with purely digital payments now accounting for more than half of the region's transactions.

Major online payment applications

1. GoPay (also known as Gojek)

GoPay is a well-known online payment platform in Indonesia and is a part of Gojek.As a tech company that offers a wide range of services, Gojek allows users to easily pay for a variety of services including transport, takeaways, shopping and more through GoPay.

2. OVO

OVO is a leading digital payment and fintech company in Indonesia that provides digital wallet services. Users can use OVO for online payments, mobile phone top-ups and bill payments.OVO has also launched a points system to encourage users to make more transactions on the platform to earn discounts and rewards.

3. DANA

DANA is an Indonesian digital payment platform that provides digital wallet services. Users can use DANA for online shopping, bill payments and money transfers.DANA supports a variety of payment methods, including QR code payments.

4. LinkAja

LinkAja is an Indonesian digital payment platform co-owned by several state-owned enterprises. The platform offers a digital wallet service that allows users to make payments, purchases and transfers.

5. ShopeePay

ShopeePay is a digital payment service launched by e-commerce platform Shopee. Users can use ShopeePay within the Shopee app to pay for online purchases, as well as at other merchants.

6. QRIS

QRIS is a standardised QR code mandated by Bank Indonesia and ASPI that unifies the payment system. It is the only QR code payment system in Indonesia and merchants must integrate QRIS if they want to offer QR code payment methods in Indonesia.

How to integrate local payment methods in Indonesia?

To seize the first opportunity, a solid infrastructure must be established. As a leading global payment platform and digital financial infrastructure provider, PhotonPay has been in the Southeast Asian market since 2022 and has established a professional and mature team. Based on market demand, PhotonPay provides customised payment solutions such as DANA, OVO, Linkaja, ShopeePay, QRIS, etc., which are popular among local consumers. Now, global merchants can easily integrate multiple local payment methods in Indonesia through PhotonPay to quickly reach over 100 million Indonesian consumers.

References:

[1] 36kr, "Talking Overseas | Local Perspective: Understanding Consumer Behaviour in Indonesia", 2023;

[2] Google, Temasek and Bain, Southeast Asia Internet Economy Report 2023, 2023;

[3] Overseas Harbour, "Indonesia Insight | What are the online payment channels in Indonesia?" , 2024.