Indonesia to meet post-COVID recovery in card payments: here’s when

The pandemic has hit the Indonesian payment market as consumers are avoiding non-essential purchases

Indonesian payment market

Indonesia to meet post-COVID recovery in card payments: here’s when. Source: unsplash.com

GlobalData has found that the Indonesian payment market is anticipated to bounce back with a 7% growth in 2021 with expected recovery from COVID-19. Consequently, the card payments market is forecasted to reach $63.9 billion in 2024.

As to the overall card payment value, it will register a subdued growth of 1.7% in 2020, forecasts GlobalData, according to the report.

To provide relief to cardholders and push card usage, the government has reduced credit card interest rates from 2.25% to 2% per month. It also concerns minimum repayment from 10% to 5% of total outstanding, effective from 1 May 2020.

The uncertainty caused by the COVID-19 pandemic has significantly affected consumers’ buying capacity, forcing them to cut down on non-essential purchases, which is in turn affecting the card payments growth
Nikhil Reddy, Banking and Payments Analyst at GlobalData

We’ve reported that the value of instant payments, where transactions are completed within ten seconds, will reach $18 trillion in 2025, up from $3 trillion in 2020; a growth of over 500%.

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