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Indonesia Cards & Payments Market Report

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  • Published Date: September 2022

CARDS & PAYMENTS MARKET IN INDONESIA

This report from Argus Advisory Services gives comprehensive overview of the consumer banking, cards and payments market in Indonesia, with clearsighted commentary backed by historic and forecast data.
The fourth-most populous nation globally, Indonesia's large number of unbanked citizens, together with ever-deepening mobile penetration, is opening up a massive opportunity for payments with e-money issuers, in particular, enjoying healthy revenues.
The Indonesian authorities' drive for cross-border linkage too multiplies the potential for new entrants to take a savvy approach that is mindful of market realities.

Lessons from this Indonesia cards market report

How fintechs are harnessing the phone.
Why interoperability is transformative.
Which segments do issuers target – and why.
E-wallet usage patterns as usage soars.
How the credit card market has failed to ignite.
The future of e-money and QRIS transactions.

INDONESIA COUNTRY REPORT | KEY FACTS

  • Indonesia is one of the fastest-growing payments markets in the world, with its large population rapidly embracing digital transactions. Mobile looks set to dominate as a result.
  • There are 70 licensed issuers that leverage e-money, of which 51 are not banks.
  • National QR code standard QRIS, launched in 2020, is growing fast.
  • Debit card ownership has grown strongly, but, with the average adult making just three debit-card purchases in 2021, usage for payments remains low.
  • The credit-cards market has failed to ignite; card penetration is just eight per cent and has failed to grow since 2016.
  • Credit-card transactions improved slightly during 2021, even though they have yet to recover from pre-pandemic levels.
  • The total value of e-commerce was $28 billion in 2021, 50 per cent higher than the previous year.
  • Argus Advisory Research expects that the value of e-money and QRIS transactions will exceed purchase volume on credit and debit cards during 2023.
  • Domestic card scheme NPG, created in 2017, has simplified transaction switching and ended the practice of merchants maintaining multiple POS terminals.
  • In terms of total credit-card POS transactions, the leading pair of bank acquirers have a market share of 41 and 31 per cent, respectively.

Indonesia Payments Research | Report Contents

TABLE OF CONTENTS
Demographics and the economy.
Payments environment.
Cards market.
Mobile payments.
Profit pool.
The networks.
Key retail banks and issuers.
Acquiring and processing.
Online acquiring.
Regulatory and other cards market information.

Indonesia Country Report Data Tables
(All 2016-25F unless otherwise stated.)

1: Demographic and economic indicators.
2: Ownership of key consumer devices.
3: Internet usage by population.
4: Access points: 2016-23E.
5: Account penetration
6: Consumer payment 2016-23E.
7: B2C e-commerce payment methods: 2016-23E.
8: Total card payment metrics.
9: Contactless cards metrics.
10: Credit card numbers.
11: Total credit cards metrics.
12: Credit card profitability indicators.
13: Debit card numbers.
14: Debit cards metrics.
15: Prepaid/e-money card metrics.
16: Mobile proximity payment metrics: 2016-21.
17 : Mobile P2P payments: 2017-21.
18: Profit pool: credit card numbers, billed volumes, outstandings, interest incomes, net interest revenues, merchant revenues, card fee revenues, other non-interest incomes, total revenues, net credit losses, operating expenses, total expenses, pre-tax profits, merchant service charges, rollover rates, APR, net credit losses to outstandings, operating costs to revenues, ROA (pre-tax profits to outstandings).

(All 2016-23F below unless otherwise stated.)

19: Networks' credit card market shares.
20: Networks' credit card numbers.
21: Networks' credit card billed volume.
22: Networks' number of credit card transactions.
23: Networks' average credit card transaction value.
24: Credit card interchange fees by network.
25: Networks' debit card market shares.
26: Networks' debit card numbers.
27: Networks' debit card billed volume.
28: Networks' number of debit card transactions.
29: Networks' average debit card transaction value.
30: Debit card interchange fees by network.
31: Key credit card issuers market shares by credit card numbers: 2018-23F.
32: Key issuers market shares in credit card outstanding: 2018-23F.
33: Key debit card issuers market shares by debit card numbers: 2018-23F.
34: Merchant acquirer credit card market share: 2022E.
35: Credit card merchant service charges.
36: Merchant acquirer debit card market share: 2022E.
37: Debit card merchant service charges.
38: Credit card issuer/issuing processor relationships.
39: Credit card acquirer/acquiring processor relationships.
40: Credit card issuing processor market shares by card numbers: 2022E.
41: Credit card acquiring processor market shares by the number of POS transactions: 2022E.
42: Online merchant acquirer market share: 2022E.

Indonesia Country Report | Selected Extracts


Demographics and Economy
Around half of the total population of Indonesia is under 30 years old, with the total forecast to increase to 282 million by the end of 2025.

Payments Environment
Indonesia is one of Asia's most exciting and attractive markets for digital payments. The number of payment providers that leverage mobile phones has grown steadily in the past couple of years.

Cards Market
In 2021, total purchase volume made on credit and debit cards increased by 11% over 2020, as Covid- related restrictions were relaxed ... Argus Advisory Research anticipates that 2019 spending will be exceeded in 2022.

Mobile Payments
As of July 2022, there were 70 operators of electronic money, of which 51 were non-bank institutions. The leading electronic money offerings are integrated into other ecosystems.

Profit Pool
The average credit card penetration rate stood at eight credit cards per 100 adults during 2021. Credit cards are used at the point of sale, with about 70% of the billed volume made at the POS.

Card Networks
There were about 16.5 million credit cards in circulation at the end of 2021 ... The number of debit cards increased by 5.9% to reach 226 million in 2021.

Key Retail Banks and Issuers
By February 2022, there were 107 commercial banks (four of them state-owned) and 1,468 rural banks. The latter offers both savings and deposit facilities.

Acquiring and Processing
BCA and Bank Rakyat Indonesia are the two major acquirers, with an estimated market share of 41% and 31%, respectively. Most Indonesian issuers and acquirers undertake their card processing activities in-house.

Online Acquiring
In 2021, the retail e-commerce market in Indonesia amounted to $28 billion, which was an increase of about $10 billion compared to 2020.

Regulatory and Markets Information
In January 2020, the central bank capped fees for payments using QR codes and established standards to ensure interoperability.

Indonesia Payments Report | Entities Referenced

AccorHotels
Agoda
Air Asia
Alibaba
Allianz
Alto Network
American Express
Ant Financial
ANZ Indonesia
Artajasa Pembayaran Elektronis
ASEAN
Association of Indonesia Payment Systems
Association of Southeast Asian Nations
ATM Alto
ATM Bersama
ATM Link
ATM Prima
Atome
Bank Central Asia
Bank Danamon
Bank Duta
Bank Indonesia
Bank Mandiri
Bank Mega
Bank Negara Indonesia
Bank of China
Bank Rakyat Indonesia
BCA
BI
BI-Fast
Blibli
BNI
BRI
BSPI
Bukalapak
Cashlez
Cigna
CIMB Niaga
Cineplex 21
Citibank
Dana
Data Hub
Daya Network Lestari
Doku
E-Toll Card
Financial Service Authority
Flazz
Garuda
Garuda Indonesia
Gaz Card
Gerbang Pembayaran Nasional
Gojek
Google
GoPay
GoTo
GoToPayLater
GPN
Grab
Häagen-Dazs
HSBC
Indomaret
Indonesia Payment System Blueprint 2025
Indonesian Idol
Jalin Pembayaran Nusantara
JCB
JD.id
KB Kookmin Bank
Kredivo
Lazada
LinkAja
Mastercard
Matahari Mall
Maybank Indonesia
Midtrans
National Payment Gateway
NPG
OJK
Oppo
Otoritas Jasa Keuangan
OVO
Palapa Ring Project
Pegipegi
Penyelengara Transaksi Elektronis Nasional
Pertamina
Prudential
QRIS
Rintis Sejahtera
Shopee
Sigma Cipta Caraka
Sinar Mas Land
Sinarmas
Singapore Airlines
Standard Chartered
Starbucks
T-cash
Telekomunikasi Indonesia
Telkomsel
Tencent Holdings
Tiket.com
Tokopedia
Traveloka
UnionPay
UOB
Visa
Viva
WeChat Pay
Zalora

MORE ASIA-PACIFIC CARDS & PAYMENTS REPORTS

Reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.

See more Asia-Pacific Country Reports, explore cards & payments research reports for markets worldwide or view our latest reports.

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