It looks like all those aggressive cashback promos by local e-payment services are continuing to convince more and more Indonesians to ditch cash for digital payments, as reflected by last month’s record-breaking figures.
As reported by Kontan today, the Indonesian central bank announced in its latest monthly report that July saw the highest amount of e-payment transactions in a month ever in Indonesia thus far, reaching IDR12.93 trillion (US$906.3 million) from over 476 million transactions.
That figure represents an incredible 262.67% increase year-on-year. The previous record for monthly transactions was set in May 2019, which saw e-payment services used for over 422 million transactions valued IDR12.81 trillion.
Indonesia has a rapidly expanding and highly lucrative e-wallet market. A recent report by management consultancy Redseer estimated that Indonesia’s e-wallet sector will grow from US$1.5 billion in 2018 to US$25 billion in 2023. Go-Pay, operated by ridesharing app-turned-superapp Go-Jek, leads the way in mobility payments while Lippo Group’s Ovo is the leader in offline purchases.
President Joko Widodo has expressed support Indonesia’s burgeoning digital business sector, which is seen as one positive amid the sluggish economic growth the country has experienced under his leadership. For his second term, the president announced that his new cabinet would include a Ministry of Investments, which will focus on the creative and digital sectors.