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Main card schemes and alternative payment methods in Indonesia

Read below about payment methods and how to increase conversion by offering the most convenient online payment methods when selling goods online in Indonesia

More to be found in the Cross-border Ecommerce Report - Indonesia

Find out more about online payment methods in Indonesia and how to increase conversion here.

Domestic and Preferred Card Schemes

• The number of credit cards in Indonesia jumped to 60% in the past 5 years to around 15 million. It is, nevertheless, under 15% penetration.
• All issuers of credit and debit cards in Indonesia currently use Visa and MasterCard card schemes, except Bank Central Asia (BCA), the country’s biggest player in the credit card market, which has its own clearing system to process its transactions.

Alternative Payment Methods

Bank Transfer is a method of transferring money from one account to another or from one entity to another. In Indonesia, bank transfer may refer to both offline and online. Offline bank transfers are manual type of transfers and may involve ATM payment or cashier payment. Online bank transfers are mostly offered by large Indonesian and multinational banks, such as Bank Mandiri via their Mandiri Clickpay, CIMB via their CIMB Clicks/OctoPay and Bank BRI via e-pay BRI. KlikBCA and BNI are other key bank-based online payment services.
Based on Veritrans’ interview with several merchants, the dropout rate of bank transfer payment method (meaning customer who said they would pay but eventually cancelled) can reach up to 50% in extreme cases. However, lower dropout rate is seen in smaller merchants (SME’s/mom and pop shops), where the acceptance rate is between 80-90%.

The key element may be the period/time for the consumer to transfer their money. Larger merchants typically allow 2x24 hours for consumer to transfer their money, whereas SME’s normally ask consumers to transfer the money within several hours.

Cash on Delivery lets customers pay for their purchases by cash upon delivery.

Other payment methods include e-wallet payments. In Indonesia, exclusive e-wallet services are provided by several payment service providers, such as DOKU through DOKU Wallet, iPayMu, KasPay (e-wallet offered on Kaskus’ online forum) PayPal and MOL Pay through MOLPoints. Through an e-wallet, end-users can safely pay for their purchases online or transfer money to another user or entity by using a virtual wallet account. An e-wallet account can be a separate payment method provided by the payment service provider to the merchant. The e-wallet can be loaded with money from several sources like credit card or an online bank account.

Read an in-depth overview (including sources) of card schemes, alternative payment methods, online payment methods in Indonesia and how to increase conversion by using the payment methods in the downloadable country report.