Indonesia, with its burgeoning e-commerce market, presents a diverse array of payment methods catering to its vast population. The payment landscape mirrors the country’s blend of traditional and modern retail experiences. This article explores the payment methods in Indonesia, shedding light on how each method is tailored to meet the unique demands of consumers in this digital age.
Payment by card in Indonesia
In Indonesia, online payments by card are experiencing steady growth. However, the penetration of online credit cards remains relatively low, at around 2% of the population. Credit cards offer users benefits such as reward points, additional discounts, and loyalty activities. The majority of online stores accept card payments, making online shopping convenient for consumers.
Local actor: BCA
Payment by cash
Even for online payments, cash payment is still common in Indonesia. Cash on Delivery (COD) is used for online purchases, allowing customers to pay in cash upon receiving their online orders. This method is favored by online shoppers, especially those who prefer to pay in cash for their online purchases. Online retailers facilitate this online payment option for consumers.
Local actors: Alfamart, Alfamidi, Indomaret, Sinarmas, TCash
  
  
  
 
Payment by Bank Transfer
Online bank transfers are common in Indonesia, offered by major Indonesian banks such as Bank Mandiri, CIMB, and Bank BRI. However, there is a high dropout rate for online bank transfer payments, reaching up to 50% in some cases. The time period for consumers to transfer their money online varies by merchant, ranging from a few hours to 48 hours. Small online merchants tend to have a lower dropout rate, between 80% and 90%.
Local actors: BCA, PermataBank, Bank Sampoerna, ATM Bersama, Mandiri, BNI, Danamon, CIMB, BRI, BSI
  
  
  
  
  
 
  
  
  
Payment by installment and BNPL
The BNPL (Buy Now, Pay Later) model has seen rapid growth in Indonesia for online payments. BNPL companies sometimes lose money, but they offer consumers the option to split their online payments into multiple installments. In 2022, online BNPL payments experienced significant growth in Indonesia, providing online shoppers with more flexibility for their purchases.
Local actors: Kredivo, Akulaku, Traveloka PayLater, Empatkali
  
  
  
Payment by digital wallet and X-Pay
Digital wallets (e-wallets) have become very popular for online payments in Indonesia, especially due to the high number of unbanked individuals. E-wallets allow users to store money in their account and make cashless transactions online via their smartphone. Key e-wallets in Indonesia include OVO, Dana, ShopeePay, GoPay, LinkAja, and Doku. They are widely accepted on e-commerce platforms, simplifying online payments for consumers.
Local actors: OVO, Qris, Jenius, Akulaku, Doku, Gopay, Kaspay, Paytren, LinkAja, Dana
  
 
  
 
  
  
 
  
If the payment methods in Indonesia intrigue you, feel free to access the #PayWorldTour library for more insights.
