1. Fintech payments in Indonesia has witnessed explosive growth in the past years with e-wallets being the torchbearer for adoption…

Indonesia Fintech payments has seen a massive upsurge in adoption over the past few years owing to the digital, socio-economic (unbanked pop.) and regulatory enablers along with an agile startup ecosystem.

Much of the increase has come on the back of e-wallet adoption as it has rapidly integrated itself with the internet ecosystem.

Moreover, Government has been pushing its use in tolls, public transport etc. among other avenues, which is catalyzing adoption.

Multiple players exist in the space cutting across consumer internet sectors. However, each player had a distinct focus on certain sub segments.

​Indonesia e-wallets Market, GMV (Indexed to 100)

​2017 = 100

Fintech Payments growth enablers/drivers

Top 2 Sector Focus of Key Players (2019)

Note: Others includes, offline, bills & recharges among other smaller segments.

2. While COVID increased the adoption of Digital payments, poor performance of sectors like ride hailing and food-tech have offset some of these gains

Although sectors like E-tailing have seen a massive upsurge in digital payments, sectors like Ride hailing and Food-tech which constituted a large share of e-wallet transactions have been badly affected by COVID.

Fintech payments value share however has remained resilient – even momentarily outperforming Pre-COVID levels owing to panic buying. Also, transaction volumes are recovering rapidly with the brisk adoption of previously nascent sectors like EdTech and eHealth along with government partnerships.

Major sectors in e-wallets mapped to GMV growth

​Fintech Payments, Transactions & Nominal Value, (Indexed to 100)

​Feb 2020 = 100

3. The sector is in a state of flux with partnerships being struck and funding being raised – newer firms need to produce differentiated offerings to really stand out

The sector is ripe with activity with players actively looking to strike partnerships with government and other entities.

It will be key for players to stay nimble footed, while effectively leveraging their market expertise to remain relevant in this ecosystem which is in a flux.


4. 4P’s will be key, for sustained competitive advantage and market domination in this new normal

4P’s are expected to be at the heart of the contender strategy – Protecting core customer base, Packaging services, Partnering with other internet entities and participating in government initiatives.

Fintech payment incumbents in Indonesia are already adopting these levers for sustained growth. However, nuanced and steadfast application of these strategies will differentiate the leaders from the pack. The jury is still out on who will go on to dominate in this new normal.