How do Indonesians pay on Tokopedia, Shopee? Complete Payment Guide

I. Overview of e-commerce payments in Indonesia

Indonesia, one of the largest e-commerce markets in Southeast Asia with a population of over 270 million and a fast-growing internet user base, has two of the most popular e-commerce platforms in the region, and understanding their payment methods is crucial for shoppers and sellers alike.

2023 data shows that of the e-commerce transactions in Indonesia:

• E-wallet share reaches 45%
• Bank transfers account for 30%
• COD (cash on delivery) accounts for 15%
• Other methods (credit card/convenience shop payment, etc.) accounted for 10%

With the popularity of digital payments, more and more Indonesian consumers are favouring convenient online payment methods over the traditional cash on delivery.

Second, Tokopedia platform mainstream payment methods

(i) Tokopedia's own e-wallet: OVO

1. Binding and top-up process

   • Download the OVO app and register for an account
   • Top up your OVO wallet via ATM bank transfer or convenience store
   • OVO is automatically associated with Tokopedia accounts

2. Advantages

   • Tokopedia Exclusive Offers and Cash Back
   • The "PayLater" feature allows for instalment payments.
   • OVO points can be exchanged for goods or discount coupons at partner merchants.

3. caveat
   Daily transaction limit of Rp 20 million (approximately US$1,300)

(ii) Bank Transfer

1. Major banks supported
   BCA, Mandiri, BNI, BRI and all other major local Indonesian banks support direct transfers to Tokopedia accounts for order settlement.

2. procedure
   Select "Bank Transfer" → select your account bank → transfer funds according to the virtual account number generated by the system → the amount must exactly match the total amount of the order → the system usually confirms the receipt of funds automatically within 5-15 minutes.

(iii) Indomaret/Alfamart convenience store offline payments

1. applicable population: Preferred option for unbanked or unbanked users.

2.Specific process::
Select "Indomaret/Alfamart Payment" when placing your order.
Save the system-generated 16-digit payment code
Present the code at any shop counter within 48 hours to complete the cash payment.

3.specificities::
No additional handling fee
Suitable for large transactions (up to 5 million IDR)

Featured Payment Solutions for Shopee Platform

(i) ShopeePay eWallet Exclusive Service

1.Activation method:
Need to complete KYC identity verification first (upload ID)
Minimum top-up is 10,000 IDR (about $0.65)

2.Core Functionality Highlights:
Scan-and-pay function for spending at physical shops
Fixed 5% cashback every Friday!
Supports payment of telephone/utility bills and other living expenses

Statistics show that the repurchase rate of ShopeePay users is 37% higher than that of ordinary users.

(ii) DANA digital wallet integration

As BCA's e-currency, DANA's unique advantages on Shopee include.
- Instant Certification for BCA Clients Eliminates Audit Waiting
- DANA Debit Card for Direct ATM Cash Balance Withdrawal

Note: DANA has a single transaction limit of IDR 10 million and a monthly aggregate limit of IDR 50 million.

COD cash on delivery localised practice

Although the global trend is to reduce the COD ratio, it remains important in Indonesia.

Special Note: Jakarta and other major cities have begun piloting smart courier locker COD service, where the consignee pays on-site by swiping/scanning the card with the OTP code to open the box and inspect the goods.

Special access for cross-border transactions

For those who need to buy imported goods:

1.Tokopedia Cross Border Zone accepts.
- VISA/Mastercard International Credit Cards (additional 11% VAT)
- Wise Official Remittance Channel (New)

2. The international version of Shopeed offers.
- PayPal USD Settlement Options
- JCB Card Type Specific Promotions

Important Note: According to the latest BI foreign exchange control regulations, a single cross-border purchase of more than US$750 needs to be declared in advance as the source of funds.

Seven golden rules for secure payments

To avoid the growing number of online shopping scams, please note that.

①Access the payment page only through the app's embedded browser; ①Access the payment page only through the app's embedded browser.
② Be wary of sellers who ask WhatsApp for private transactions; and
③Enable dual authentication such as OTP + fingerprint recognition.
④ Regularly clean up outdated card information that has been saved.
Check that the name of the payee must contain "PT Tokopedia"/"SeaMoney".
(6) Priority is given to logistics companies with FPKD certification for the delivery of large amounts;
(vii) Retain all screenshots of successful payments for at least 90 days

Future Innovation Direction Watch

According to the Central Bank's Blueprint 2024 disclosure, new features being tested include.

✓ Biometric cross-platform unified authentication (under the BJPS system).
✓ Escrow Intermediary Escrow Payment secured by blockchain technology;
✓ Digital Rupee (CBDC) Direct Connect E-Commerce Settlement Pilot

Staying on top of these changes will help you stay on top of digital payments!

V. Frequently Asked Questions about E-commerce Payments in Indonesia

(i) How to deal with payment failure?

1. Checking basic information

   • Confirmation of card/e-wallet balance
   • Verify that the information on the receiving account is accurate
   • Verify stable network connection (recommend switching 4G/WiFi test)

2. Customer service channels for each platform::
   | Platform | WhatsApp Customer Service Number | Phone Hotline | APP Built-in Online Customer Service |
   |————|——————-|——————-|—————-|
   | Tokopedia | +62-815-1111-1010 |1500-009 | 24 Hour Intelligence + Humanity|
   | Shopee | +62-811-8707-922 ｜(021)5080-1555 |9:00-21:00 Service|

3. Handling of special situations::
   If you encounter the situation of "Payment has been deducted but order has not been confirmed", please:
   ①Save screenshots of bank/e-wallet transaction vouchers
   ② Record Transaction Reference Number (TRX ID)
   ③Submit a complaint through the official channel, usually resolved within 2 working days

(ii) Impact of the new GST VAT regulations

Highlights of tax policy from April 2024 onwards:

- Low Value Goods Tax (LVGT): 11% VAT on imports of ≤3 million IDRs
- Local Digital Services Tax: Additional government tax of 1% on all e-wallet top-ups
- Tax Invoice Acquisition: Download the full tax voucher from Tokopedia "My Orders" or Shopee "Purchase History".

IMPORTANT NOTE: Using a local payment tool such as OVO automatically calculates and displays the total price including tax, whereas tax paid by an international credit card will be shown separately on the bill.

VI. Comparison of Merchant Collections Solutions

For merchants selling on the platforms, the settlement differences between the two platforms are as follows:

(i) Tokopedia merchant account features

1. Settlement cycle matrix

|Payment Methods ｜T+1 Rate｜Minimum Withdrawal Amount｜Handling Fee Rates |
|-----｜---｜- ---｜---|
|OVO Instant Transfer |100% |- │Free |
|BCA Bank Account │98% │50,000IDR │0.5% |
| Other Local Banks │95% │100,000IDR │0.75%-1% |

2.Featured Functions::
- "Modal Toko" credit facility: up to IDR 200 million working capital based on sales data
Multi-store consolidated clearing house support

(ii) Shopee Merchant Financial Advantage

1.Rate Preferences(as of 2024Q2):
  ' New sellers enjoy 0% commission for the first 3 months
  ' 0.6% fee reduction for receiving payments with ShopeePay

2.Funds management tools::
   ' Automated bill splitting system (can set up automatic splitting ratio between suppliers/logistics)
   'Cross-border sellers support multi-currency settlement such as USD/SGD

Note: Both platforms require an NPWP (Taxpayer Identification Number) verified corporate bank account to be bound in order to withdraw more than 5,000,000 IDR/day.

VII. Differences in payment habits between urban and rural areas and coping strategies

Regional analyses based on the latest census data:

(i) Characteristics of developed areas such as Java

- E-wallet penetration of 67% (15 percentage points above the national average)
- Prefer to use QR code aggregated payments from state-owned banks like BNI
- Night time (20:00-23:59) transactions accounted for 41% of the whole day

(ii) Special needs of the outer island provinces

For areas with weak infrastructure, a combination of the following programmes is recommended.

if(buyer is located in Papua/NTT etc.){

   Preferred Indomaret offline payment codes.

   Alternative postal remittance (Wesel Pos).

   Logistics must choose full-coverage courier such as JNE/Tiki.

}

Typical case study: The successful model of collective online purchase of fishing gear by fishing communities in Central Sulawesi through Alfamart outlets has been prioritised by Tokopedia.

Eight, seasonal promotional payment strategy

Get the most out of the following key timeframes.

Comparison of resource allocation among the three major shopping festivals of the year

||Date Range 丨Payment Offer Strength 丨Preparation Suggestion Cycle 丨Products
|-丨-----丨-----丨-----丨 -----|
∣Ramadan promotion∣H-30 days to H+7 days∣full discount + interest-free instalment∣45 days in advance into the warehouse∣
∣Double 12 ∣12.01-12.15 ∣Red Packet Rain + Shipping Coupon ∣Preparation in mid-November∣
∣Independence Day Sale ∣August whole month ∣State-subsidised discount coupon ¦Completion of selection by the end of July¦

Tips and Tricks.
' Stacking Tip: "Receive a platform voucher first → then pay with your Bank Mandiri card to enjoy a discount"
'Tips to avoid congestion: Eastern time zone users can complete the grand finale after midnight Western time (after 23:00 in Jakarta)!

This continuously updated guide will help you gain an in-depth understanding of the operating logic of Indonesia's digital ecosystem. For detailed operation manuals for specific banks or the latest policy interpretations, it is recommended to visit the official central bank website (bi.go.id/payment-system) on a regular basis.