Why Digital Wallets Are Growing Rapidly In Indonesia
Why Digital Wallets Are Growing Rapidly In Indonesia

Why Digital Wallets Are Growing Rapidly In Indonesia

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Ges-r.Com – Fintech (Financial Technology) services in Indonesia have continued to grow in recent years. You can see this with the increasing number of emerging Fintech startups. In addition, you as a user can also feel the impact of the presence of Fintech services in Indonesia, such as online loans, digital wallets, online investments, and so on.

One of the Fintech services that deal with young people today is the digital wallet. Are you right? Digital wallets themselves are most widely used by millennials today for various needs. Generally used to make payments at merchants who have become digital wallet partners.

In addition, the phenomenon of cashback provided by digital wallets is also one of the reasons why this Fintech service is so developed among millennials in Indonesia in the era of digitization like now, call it OVO and GoPay. Here’s a more detailed explanation, why is digital wallet growing in Indonesia?

There Are Still Many People Who Have Not Been Touched By Banking Services

Quoted from Katadata, one of the factors driving the growth of digital wallets in Indonesia is that only 48.9% of Indonesia’s adult population already has a bank account. This is directly proportional to the financial penetration of credit cards and debit cards in Indonesia, where they are at 0.7 per capita and 0.59 per capita, respectively.

Especially if we reflect on the fact that the creation of an account in a bank has conditions and supporting documents, which are often an obstacle, that is, it is mandatory to have a tin.

Unlike the case with the digital wallet app, which you can easily download on the Google Play Store or the App Store on your smart phone. Everyone can register with capital ID card only. This is a requirement that has been set by the Financial Services Authority (OJK) as a Fintech regulator in the country.

The Number Of Smartphone Users Is Increasing

According to data released by Statista, there are at least 62.69 million smartphone users in Indonesia. Meanwhile, according to The Jakarta Post, the rate of mobile phone ownership in Indonesia reached 64.8%. Of course, this data can be used as a benchmark for why digital wallets thrive in Indonesia.

Because it must be recognized today the use of smart phones has become a mandatory item that always accompanies your daily activities. So, do not be surprised, if the digital wallet application now adorns the screen of your smart phone.

E-Commerce and on-demand applications

The e-Commerce sector is growing rapidly in Indonesia and on-demand applications are making digital transactions inevitable. For example, Tokopedia works with OVO as a payment partner, Grab partners with OVO, and Gojek with its GoPay service.

Just imagine how many users Grab, Gojek, and Tokopedia. Of course, the number of users reaches up to millions of people. Even in 2017 alone, GoPay was recorded as the most widely used by contributing 31.34 million transactions with electronic money.

In fact, Gopay did not stand alone at that time, but there were 32 other electronic money issuers operating in Indonesia.

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