Indonesia Mobile Payments Market Size

Indonesia Mobile Payments Market Analysis

The Indonesia mobile payments market for mobile payments is anticipated to expand at a CAGR of 29.5 percent over the projected period (2022 - 2027). The use of mobile payment systems like Gojek, GoPay S.R.O., DANA, DOKU, and LinkAja by businesses and services nationwide is progressing quickly. This trend is anticipated to persist during the projection period due to rising internet usage and the rapid expansion of online shopping.

• Mobile phones, especially smartphones, have evolved into a necessary component of a person's life as a result of the nation's economy's fast growth. Additionally, the majority of people worldwide now depend on the internet for most of their daily activities. This led to a large surge in the market for mobile payments as smartphones and internet users spread around the region. According to Bank Indonesia, access to financial technology is extensive, with over 10 million fixed-line broadband internet customers and 248.2 million users of 3G and 4G mobile phones.
• Many industry participants, like Gojek, DANA, etc., use reward systems to both retain existing mobile payment service users and attract new ones. In order to facilitate transactions through their applications, several service providers, for instance, provide scratch cards that are loaded with a specific amount. Such compensation schemes encourage customers to use mobile payment apps, which boosts the market for mobile payments.
• The market for mobile payments is expected to expand over the course of the forecast period as a result of the growing popularity of M-commerce, which entails doing online business utilizing wireless devices like smartphones. The world's most mobile-oriented area, according to App Annie's Q3 report for 2021, is Indonesia. Remarkably, Indonesian people spend 5.5 hours every day utilizing mobile apps.
• Additionally, M-commerce enables consumers to transact anywhere there is wireless internet access. Additionally, businesses like LinkAja and Paytren have already debuted their mobile commerce offerings. Customers can now instantly make in-store purchases without the hassle of swiping a card, thanks to the introduction of digital wallets like GoPay, OVO, ShopeePay, etc.
• The market for mobile payments is growing but is being constrained by rising data breaches and security problems. Additionally, due to worries about security and unlawful use of personal data, many customers are hesitant to accept the new technology.
• Customers all across the world started using digital transactions during the COVID-19 epidemic. Customers have access to digital banking systems through several banks and financial institutions. As a result, during the COVID-19 epidemic, mobile payments increased across the nation. As seen in the Indonesian Batik small- and medium-sized enterprise (SME) sector, which was experiencing a shift in modern transaction methods, particularly since the coronavirus outbreak spread in Indonesia, interest in m-payment was growing among consumers and traders because it was a contemporary alternative to debit and credit cards.