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.

Nonetheless, banks in Indonesia are growing increasingly aware of online trends and have taken initiatives to strengthen their digital payment channels such as digital banking services.

In the payments industry, BCA took the lead with 23 percent of the market share followed by Mandiri and BRI with 16 percent each, OVO with 9 percent, GoPay with 8.4 percent, BNI with 8 percent, DANA with 4.6 percent, LinkAja with 2.5 percent, Shopee with 1.6 percent, and CIMB Niaga with 0.9 percent.

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Bank Indonesia additionally found that BCA led the way in the credit card market with 26 percent of the market share followed by Bank Mandiri at 12 percent, CIMB Niaga and BNI with 10 percent respectively, and Bank Mega with 9 percent.

Similarly, BCA spearheads the debit card market with 33 percent of the market share then BRI with 25 percent.

Bank Mandiri and BNI have 14 percent of the debit card market share while CIMB Niaga takes the last spot with 1.2 percent of the market.

(Writer & Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2020/11/09/173200126/ini-pemimpin-pasar-uang-elektronik-di-indonesia