OVO Leads Indonesia’s E-Money Sector as Digital Payment Skyrockets

JAKARTA, KOMPAS.com – Bank Indonesia data reveals digital payment provider OVO took the lead in Indonesia's e-money sector last year with a 20 percent market share.

Bank Mandiri and GoPay followed with 19 percent each, according to Bank Indonesia Deputy Governor Sugeng.

The statistics report shared by Sugeng on Monday as part of the launch of the Indonesia Fintech Society indicates a shift in payment system methods from banks to fintech.

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Other digital payment providers were: DANA and BCA that each had a 10 percent market share, BRI with 6.3 percent, LinkAja with 5.8 percent, Shopee with 3.7 percent, BNI with 1.3 percent, and Doku with 1.2 percent.

While fintech companies are dominating the e-money sector, banks remain the dominant player in the payment gateway market.

This is because the entry of debit and credit cards is only handled by banks which also have the authority to permit such requests.

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“During the end of 2015, payment gateways were dominated by banks, but by the end of 2019, non-banking operators have started to emerge in the market. The growth has been remarkable, but it also shows how banks in Indonesia have fallen behind in their digitalization measures.”

Based on Bank Indonesia’s assessment, in early 2019, banks were focused on electronic channels such as ATMs and EDC machines.