Market Research Report
Indonesia Cards & Payments: Opportunities and Risks to 2023
|Indonesia Cards & Payments: Opportunities and Risks to 2023|
Published: October 10, 2019
Content info: 79 Pages
Delivery time: 1-2 business days
Accounting for 98.1% of total transaction volume in Indonesia in 2019, cash remains the predominant payment instrument - especially among the rural population. This is mainly due to the high unbanked population, inadequate banking infrastructure, limited public awareness of electronic payments, and low acceptance of payment cards at merchant outlets. However, the government has undertaken various initiatives including the introduction of a National Strategy for Financial Inclusion, the appointment of banking correspondents in rural areas, the migration of payment cards to EMV standards, a merchant discount rate cap, compulsory use of electronic methods for toll road payments, the launch of the National Payment Gateway (NPG), and the introduction of the interoperable QR Code Indonesian Standard (QRIS).
Consequently, the number of payment cards in circulation, transaction volume, and transaction value recorded robust compound annual growth rates (CAGRs) during the review-period (2015-19e) - a trend that is anticipated to continue over the forecast period (2019e-23f).
Credit and charge cards account for a smaller proportion of overall payment cards in circulation. This is primarily due to strict government regulation with regards to credit card eligibility. And effective from February 2018, Bank Indonesia (the country's central bank) mandated that all credit card issuers must submit transaction details to the tax office to curb tax evasion in the country.
E-commerce registered significant growth, rising from IDR66.5tn ($4.6bn) in 2015 to IDR238.3tn ($16.6bn) in 2019 at a review-period CAGR of 37.6%. Growing internet penetration, rising foreign investment, benefits such as discounts, and the convenience offered by online shopping are the key drivers. QR code technology is also playing a role, enabling consumers to make payments by scanning QR codes displayed on merchants' websites.
The report "Indonesia Cards & Payments: Opportunities and Risks to 2023" provides detailed analysis of market trends in the Indonesian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, cash, and cheques during the review-period (2015-19e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2019e-23f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.
The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.
The report "Indonesia Cards & Payments: Opportunities and Risks to 2023" provides -
The report "Indonesia Cards & Payments: Opportunities and Risks to 2023" enables the user to -
Companies Mentioned - Bank BRI, BNI, Bank Mandiri, BCA, CIMB, Bank Danamon Indonesia, Maybank, Bank Mega, Citibank, United Overseas Bank, Visa, Mastercard, American Express, JCB