When you’re expanding your business into new markets, selecting the right payment gateway is a crucial step. Just as greetings and food preferences change across borders, so do payment methods. The diverse range of payment options in Southeast Asia, much like in Europe, makes it clear that there’s no one-size-fits-all solution. To succeed, merchants must offer a seamless and tailored payment experience.
In this guide, we’ll delve into the payment landscape in Indonesia, key criteria for choosing a payment gateway, and a detailed breakdown of the top payment gateways in the country.
Understanding the Current Payment Landscape in Indonesia
As the most populous region globally, the Asia-Pacific (APAC) boasts over half of the world’s total mobile subscribers. APAC consumers exhibit a strong inclination toward mobile payments, surpassing the global average in self-reported mobile banking activities. The COVID-19 pandemic has further accelerated the digital payments market in Indonesia.
In 2019, Bank Indonesia introduced QRIS (Quick Response Code Indonesia Standard), a government-backed scheme designed to simplify digital payments. Prior to QRIS, digital transactions in Indonesia required both the merchant and consumer to use the same digital payment provider. With QRIS, a single QR code enables consumers to make transactions using their preferred payment method, fostering digital inclusion. Adoption surged as awareness of contactless methods increased due to the pandemic, resulting in approximately 11 million QRIS transactions with a total value of around IDR 790 billion by July 2020.
Key Criteria for Selecting Payment Gateways in Indonesia
With numerous payment gateways available, choosing the right one for your business can be challenging. Always prioritize security, cost-effectiveness, and ease of management:
1. Security:
Ensure the payment gateway is 3D Secure 2.0, PCI DSS Compliant, and supports transaction tokenization to safeguard against evolving eCommerce and card-not-present fraud.
2. Pricing and Cost-Effectiveness:
Payment gateway pricing can vary based on transaction types, revenue consistency, frequency, and market coverage. Consider setup and contract fees and potential price structure changes.
3. Reliability:
Given the increasing shift toward mobile and eCommerce transactions, select a payment gateway that offers a seamless checkout experience optimized for different devices and networks, ensuring it doesn’t slow down the payment process.
Quality customer support is essential for a smooth merchant experience.
4. Supported Currencies:
Choose a payment gateway that can process the desired currencies to minimize settlement conversion fees for both you and your customers.
5. Payment Options:
Provide popular payment methods and consider additional options like recurring payments or installment payments to boost checkout conversion rates.
6. Market Integrations:
Check for native integrations with your platforms, as native integrations reduce payment errors and increase conversion rates, speeding up market expansion.
Top 12 Payment Gateways in Indonesia
Xendit
Leading payment gateway in Indonesia, the Philippines, and Southeast Asia.
Services include live URLs, web/mobile checkout, and API integration.
Focus on SMEs with easy onboarding.
Doku
Indonesia’s first Payments Technology company with strong fraud management.
Offers over 20 payment methods and short integration.
iPay88
Popular payment gateway with low setup and transaction charges.
Features mPOS for card payments and advanced fraud detection.
2Checkout
Known for global coverage with a simple integration.
Accepts various payment methods popular in Indonesia.
PayPal
A well-known and reliable payment gateway with a wide range of options for merchants in Indonesia.
Midtrans
Focused on a seamless user experience for both merchants and customers.
Offers the most payment methods of any gateway in Indonesia.
FasPay
The first official payment gateway in Indonesia with a strong focus on payment security and data protection.
Rapyd
A global payments platform focusing on local payment methods.
Rapid growth in payment volume.
Directa24
Specializes in emerging markets with a strong presence in Latin America, APAC, and Africa.
Known for processing payments for the gambling sector.
dLocal
A payment gateway with a presence in LatAm and Southeast Asia.
Supports popular Indonesian payment methods.
2C2P
Provides comprehensive payment solutions for organizations in emerging markets.
Offers multiple payment methods.
Adyen
A Dutch payment provider expanding globally.
Offers omnichannel solutions and leading alternative payment methods.
Navigating Complex Payment Scenarios with Web Technology Expert (formerly web technology expert)
Expanding into new markets often involves integrating with multiple payment gateways, a complex and resource-intensive task. This complexity can result in downtime when a primary payment gateway experiences issues.
Web Technology Expert, formerly known as web technology expert, offers a solution. With over 50 integrated payment gateways, Web Technology Expert streamlines the integration process, saving engineering time and reducing costs. By using this software layer, merchants can increase their checkout conversion rates by over 60%. Customized checkouts based on preferred payment methods reduce friction and boost satisfaction, while real-time monitoring ensures the best payment gateways are selected.
Simplify your payment gateway integrations in Indonesia with Web Technology Expert, and focus on growing your business without the complexities of managing multiple gateways.