E-money transactions in Indonesia hit $3.3b in 2018

Users turned to digital money for e-commerce, mobile SIM top-ups, and public transport.

E-money transactions in Indonesia hit $3.3b (IDR47.2t) in 2018 as fintech firms took advantage of gaps in the financial infrastructure and low financial inclusion to grow their consumer base, according to Fitch Solutions. 

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As many as 173.8 million digital money instruments have been issued by January 2019, a service which largely leverage on mobile phone numbers for identification. Users embraced digital money instruments for a wide range of consumer needs including e-commerce, mobile SIM top-ups, parking fees and public transport ticketing.

"The e-money and payments segment continues to show strong growth, and consolidation within the sector is positive to improve services and ease competitive pressures," Fitch Solutions said in a report. 

Although the country is home to 36 licensed electric money issuers, Indonesia's electronic money landscape is primarily led by two independent players - Go-Pay and OVO - and one operator-led service called G-Cash as banks lag behind third-party players and have only started responding to the digital threat with the planned rollout of a mobile wallet service called LinkAja.