Top Payment Methods In Indonesia that Your Business Needs

The Impact of Cutting Edge Technology

The global cross-border e-commerce market has soared to new heights with an estimated 4.2 billion active e-commerce users expected by 2023. The surge in international demand for products has presented businesses with an immense opportunity for online sales growth. To cater to a truly global customer base, facilitating international payments has become crucial. One of the most effective ways to do so is by offering popular payment methods. In this article, we’ll explore the top payment methods in Indonesia that are essential for your business.

Indonesian Payment Trends for 2022

Like many countries, Indonesia faced challenges during the COVID-19 pandemic, leading to shifts in the payment landscape. The pandemic caused a significant decline in card payments, with a 22.4 percent drop in 2020. However, in 2022, the card payments market is projected to grow by 10.7 percent, reaching IDR 619.5 trillion (US$ 44.2 billion). Indonesia was historically a cash-driven economy, with cash-on-delivery accounting for 16% of total e-commerce payments in 2019. However, this figure is expected to decrease to 11% by the end of 2022 and further to 6% by 2025.

This reduction in cash usage was prompted by efforts to limit the spread of germs and government incentives promoting the adoption of contactless and mobile payments. Mobile wallets saw significant growth during the pandemic and are projected to increase their percentage share of Indonesia’s gross transaction value (GTV) from 23% in 2019 to 28% in 2022. This reflects Indonesia’s status as a mobile-first e-commerce market, with over 58 percent of transactions taking place on mobile devices.

Now, let’s explore the top payment methods in Indonesia that businesses need to be aware of:

Top Payment Methods in Indonesia


Cash is the dominant payment method in Indonesia, making up 77 percent of point-of-sale purchases.

Due to a high unbanked population, cash remains the primary choice for low-value transactions.

Credit Cards:

Visa and Mastercard are the most widely accepted card brands.

While credit card usage decreased during the COVID-19 pandemic, it is expected to grow by 10.7% in 2022.

Bank Transfers:

Bank transfers are used for over a quarter (26 percent) of e-commerce payments in Indonesia.

This method is expected to face competition from digital wallets.

Digital/Mobile Wallets:

With a large unbanked population and high smartphone penetration, digital wallets have gained popularity.

They account for one in five online shopping transactions in Indonesia.

Major digital wallets in Indonesia include UniPin, OVO, GoPay, Dana, and LinkAja.

Cash on Delivery (COD):

Despite government initiatives promoting digital payments, 73% of online shoppers still prefer COD.

Customers can make online purchases and pay in cash upon delivery.

QRIS (QR Code Indonesia):

QR code payments have seen significant growth in popularity, with a 150% quarter-on-quarter increase on some platforms.

Customers can scan QR codes to make payments using their banking apps or digital wallets.

Direct Debits:

Direct debits are gaining traction for recurring payments, such as utility bills and subscriptions.

Major Indonesian banks are rolling out direct debit features to compete with digital wallets.

Buy Now Pay Later (BNPL):

BNPL services allow consumers to make purchases and defer payments, often interest-free.

It is becoming increasingly popular in Indonesia, especially among the unbanked population.

Popular BNPL services include Atome, Kredivo, and Afterpay.

Navigating Complex Payment Scenarios with Web Technology Expert

The ever-evolving payment landscape introduces new methods and complexities for businesses. To stay ahead and efficiently scale into new markets, businesses need to integrate a variety of popular local payment methods and currencies. This can be a time-consuming and challenging process.

Web Technology Expert simplifies this by offering a payment orchestration platform that allows businesses to integrate with multiple payment gateways simultaneously. With support for over 300 international payment methods, including those from Indonesia and other Southeast Asian countries, you can enhance your checkout conversion rates and scale your business effortlessly. In just 60 minutes, you can be up and running on the web technology expert platform without requiring advanced coding knowledge.

Choose Web Technology Expert to streamline your Indonesian payment method integrations and provide a seamless payment experience for your customers.

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