Mobile payment users in Indonesia top 40 mil.: NNA survey

02, Nov. 2018

JAKARTA, NNA – The number of people using mobile phones to make payments in Indonesia reached 41.5 million by the end of 2017, boosted by an increase in telecommunications service subscribers and ride-hailing app users.

Go-Jek, the operator of major ride-hailing app, Go-Pay, and state-backed PT. Telkom Indonesia (Persero) Tbk. each have around 10 million users of mobile cashless settlement, according to an NNA survey.

Users of T-Cash, the cashless payment launched in 2007 by the telecom firm, surged more than sixfold from 1.5 million in 2016, with a transaction value of 10 trillion rupiah ($662 million) last year.

T-Cash became available at small shops at some traditional markets in Jakarta in December 2017. The telecom firm stepped up efforts to expand its user base, offering the service to people who are not customers of its telecom service in July.

Ovo, the mobile payment service operated by PT. Visionet Internasional, a unit of local conglomerate Lippo Group, has rapidly attracted about seven million users since launching its service in September 2017 by making it available at shopping malls, schools and hospitals run by the conglomerate. Ovo membership outlets have exceeded 300,000.

Visionet also partnered with Grab Taxi Holdings Pte Ltd. of Singapore., the operator of Grab, another popular ride-hailing app in Indonesia and other Southeast Asian nations, as well as a state-owned bank and other firms.

The Ovo operator on Wednesday announced an alliance with Indonesia's major e-commerce marketplace Tokopedia.

Last December, Tokyo Century Corp., a major Japanese leasing firm, injected $116 million into PT. Bumi Cakrawala Perkasa, Visionet’s holding company, to join hand in the cashless payment service.