Payment cards keep on dominating e-commerce purchases in Indonesia, accounting for 36.6% in 2019
GlobalData revealed that growing Internet penetration, rising foreign direct investment (FDI), and online shopping set to drive Indonesia’s e-commerce market.
A compound annual growth rate (CAGR) of 16.3% is expected to increase from an estimated $16.6 billion in 2019 to $30.3 billion in 2023. For comparison, between 2015 and 2019 the e-commerce market in Indonesia grew at a CAGR of 37.6%.
The total e-commerce transaction value of alternative payment solutions in 2019 accounted for 19.4%, up from 15.5% in 2018. PayPal is chosen to be the most popular alternative payment tool, due to a combination of its comfort and security.
The research reveals that low-cost payment solutions based on QR code technology are increasingly being used in e-commerce. They allow consumers to make payments by scanning QR codes displayed on merchants’ websites.