Indonesia - Global Payment Orchestration

Entering 2023, Indonesia is the world’s ninth-largest eCommerce market. This is no small feat, especially considering the size of Indonesia’s population—less than a quarter of the people of all-star markets like China and India, who take up the lead positions. Indonesia’s eCommerce market was valued at $53 billion in 2023, and the Central Bank of Indonesia noted a 27% YOY increase in eCommerce transaction volume.

Now, businesses are flocking to the country to capitalize on this burgeoning market.

	Indonesia’s eCommerce market was valued at $53 billion in 2023, positioning it as the ninth-largest eCommerce sector in the world. By 2028, it’s predicted to reach $86.8 billion, a 10.4% CAGR.
	Around 85% of merchants in Indonesia’s digital economy are resellers or distributors—only 15% sell their own products.
	The reseller market in Indonesia presents an estimated opportunity of $115 billion to $125 billion in gross merchandise value (GMV). Still, this market faces significant challenges, including squeezed margins, lack of demand knowledge and pricing influence, low visibility on eCommerce platforms, and fluctuating social commerce performance.

	Fast-moving consumer goods (FMCG) and consumer appliances are the most significant segments within the reseller opportunity.
	There are an estimated 4.5 million active online sellers in Indonesia. Most are micro, small, and medium-sized enterprises (MSMEs).
	On average, Indonesians dedicate four hours per day to mobile device internet usage, which is twice that of Americans.
	Indonesians rely on various payment methods, including unique options like Virtual Accounts.

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With this growing economy’s immense potential, it is more important than ever for companies hoping to capitalize on its success to master the intricacies of local payments.

While Indonesia has a robust national banking system, it also boasts many alternative payment networks, such as cashless cards, digital wallets, bank transfers, direct debit transactions, and mobile payment services.

Navigating these complex payment systems can be tricky for newcomers—fortunately, global payment platforms like MassPay can help companies master hyper-localized payments.

When companies partner with MassPay, they can access the Indonesian eCommerce market with confidence their global reach is meeting local preferences. This helps them take advantage of its tireless potential and secure their spot in the world’s ninth-largest eCommerce market.

Streamline Your Entry Into Indonesia’s eCommerce Market

Indonesia’s sprawling archipelago and digitally-connected populace presents incredible opportunities in the world of eCommerce.

MassPay's dedicated solutions for the Indonesian landscape ensure:

Transaction processing built to cater to Indonesian consumer’s unique preferences

Seamless integrations with both domestic and regional payment gateways

Enhanced fraud prevention mechanisms specific to market challenges

Seamless payment processing

MassPay’s solutions are tailored to the Indonesian market. With a deep understanding of Indonesia’s payment landscape, MassPay seamlessly integrates with popular local payment methods such as Virtual Accounts, QRIS, e-Wallets, and more.

With support for various alternative payments, businesses provide their Indonesian customers with a seamless and convenient payment experience.

Whether accepting payments from virtual accounts or facilitating transactions through QR codes, MassPay’s optimized payment processing solutions empower businesses to thrive in Indonesia’s dynamic business environment.

Payments

Your business can confidently initiate and execute payments in Indonesia with MassPay’s end-to-end payment services. With a secure, seamless, and convenient payment system, companies can easily pay their customers or vendors.

Moreover, MassPay’s compliance professionals ensure all payments meet the highest security and compliance standards. This also saves Indonesian merchants time and money because the need for manual processing or extra costs associated with third-party processors is cut out.

Security and state-of-the-art technology

MassPay boasts state-of-the-art security measures to protect businesses from fraud and losses due to chargebacks or failed payments. It also uses advanced encryption technology for data protection and complies with the highest security standards.

Our robust measures ensure your business operations remain safeguarded, providing you with peace of mind and confidence in securely managing and processing sensitive information.

Forex

Expand your payment options and enhance customer convenience in Indonesia by leveraging MassPay’s Forex service. With MassPay, businesses can provide customers with more ways to pay while benefiting from competitive exchange rates and minimal transaction fees.

Payment preferences (in local currency)

To effectively cater to the diverse payment preferences in Indonesia, offering payment solutions in the local currency is vital. By offering payment options in Indonesian Rupiah (IDR) and other currencies, businesses can establish a stronger connection with their customers, partners, employees, and contractors.

The Indonesian Payment Market

The Indonesian payment market is experiencing significant growth and transformation. With the rise of eCommerce, digital platforms, and the increasing adoption of digital payments, the demand for efficient and secure payment solutions has surged.

As the Indonesian payment market continues to evolve, businesses are actively exploring innovative technologies and partnerships to optimize their payment processes and deliver a seamless experience to their stakeholders—enter MassPay.

Indonesian Payment Methods

The most common payment methods include Virtual Accounts (VA), over-the-counter payments (OTC), QRIS, e-Wallets, credit cards, PayLater, and Direct Debit. These payment methods are in high demand for several reasons, and merchants must offer them to tap into the growing eCommerce market.

Virtual Accounts

Virtual Accounts have revolutionized online payments in Indonesia, becoming the country’s most popular alternative payment method. Unlike traditional interbank transfers, these temporary accounts offer a secure and convenient way to transact without registering the sender’s account number.

From the merchant’s perspective, virtual accounts automate payment identification, eliminating the manual validation process. This popular payment method in Indonesia streamlines payments, improves efficiency, and provides a seamless experience for businesses and customers alike.

Over-the-Counter (OTC) Payments

Over-the-counter (OTC) payments are widely embraced in Indonesia as another popular payment method. This option allows customers to complete online purchases by interacting with clerks or cashiers at retail outlets such as Indomaret or Alfamart.

OTC payments have been instrumental in expanding the reach of online businesses, particularly among traditional buyers who are not fully accustomed to digital payment methods. With numerous retail stores serving as OTC payment collection points, online shoppers can conveniently and securely finalize their purchases, bridging the gap between offline and online commerce in Indonesia.

QRIS

Effective January 1, 2020, Bank Indonesia has introduced a game-changing payment solution, QRIS (Quick Response [QR] Code Indonesian Standard), for all non-cash payment service providers. This method combines convenience and security—customers can make fast payments with their phones through a secure QR code scan.

E-wallets

E-wallets have become increasingly popular throughout Southeast Asia due to their cost-effectiveness and ease of use. When you offer e-Wallet solutions, you can tap into a much broader customer base—especially millennials and Gen-Z shoppers who are more inclined to opt for digital payments.

Credit cards

There are fewer credit cards in circulation in Indonesia than in many other countries (about six per 100 people). Still, the number is growing and is expected to increase with a compound annual growth rate of 12.8% between 2022-2026.

Your online customers expect the convenience of credit card payments, so offering this option is necessary. Fortunately, MassPay makes it easy to start accepting credit cards from customers in Indonesia.

PayLater

PayLater—also called Buy Now Pay Later (BNPL)—is a promising payment option that presents exciting growth opportunities for businesses in Indonesia. As digital payments gain popularity, merchants strive to enhance convenience for customers when making payments, and that’s what BNPL helps them do.

Direct debit

With more Indonesian banks offering direct debit services to keep up with digital wallet solutions, businesses can now benefit from providing this convenient payment method. Indonesians use direct debit services to process payments for different products and services, allowing them to pay in real time without using their credit cards.

Take Advantage of the Burgeoning Indonesian eCommerce Market

Take Advantage of the Burgeoning Indonesian eCommerce Market

Indonesia’s eCommerce market: Unlocking its vast potential

Global Payments
Insights Report

Ready to streamline your payment and payout processes?

See Where Your Business Can Go With MassPay’s Hyper-Localized Solutions For Payments In Indonesia