E-wallet OVO Indonesia’s most popular payment option: Survey
A recent survey by global fintech organization Rapyd shows that e-wallet OVO is the most preferred payment method in Indonesia. The survey also found that online payments are more popular than bank payments in emerging markets in Asia.
The survey report titled Asia Pacific E-commerce and Payment Guide 2020 showed that OVO was the most used e-wallet for online and offline payments during March and April, followed by debit cards, ATM transfer and the GoPay e-wallet.
“While debit cards are frequently used, they score low in popularity, highlighting the stronghold e-wallets have on everyday transactions,” the report states.
In the survey, 17.8 percent of respondents said they preferred the OVO e-wallet over BCA's online banking service klikBCA (12.2 percent), ATM transfers (10.4 percent) and the DANA e-wallet (8.6 percent).
An earlier survey by market research firm Ipsos Indonesia, however, found that people's “top of mind” e-wallet was GoPay, as most people used e-wallets for the first time to pay for app-based taxi services such as Gojek.
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OVO's growing popularity has largely been backed by its partnership with Grab and e-commerce platform Tokopedia.
The report also showed credits cards remained the most popular form of payment in Japan, Singapore and Taiwan, while e-wallets were the preferred choice in India, Indonesia, Malaysia and Thailand.
“While developed countries have been using cards for years and seem to be slower in adopting alternatives, consumers in emerging economies leapfrogged the cards stage altogether and use mobile wallets or bank transfers,” the report stated.
The report suggests that only 4 percent of Indonesians have international credit cards and that debit cards are usually preset to disallow online purchases.
According to the 2019 e-Conomy SEA report by Google, Temasek and Bain & Company, 47 million people in Indonesia have bank accounts but not credit cards, investments and insurance, while another 92 million people are unbanked, meaning they do not have bank accounts.
Fintech has been gaining in popularity over the years as it enables the unbanked and people in remote areas to access financial services, with the e-Conomy report predicting Indonesia's digital economy grow to $130 billion by 2025.
Digital payments in Southeast Asia are expected to reach US$1.1 trillion in value by 2025, according to the study. Accounting for just over $22 billion in 2019, e-wallet transactions are likely experience a more than fivefold growth and exceed $114 billion by 2025.