Indonesia Payments Infrastructure Market Size (2024 - 2029)

Indonesia Payments Infrastructure Market Analysis

The Indonesia Payments Infrastructure Market size is estimated at USD 98.30 billion in 2024, and is expected to reach USD 218.56 billion by 2029, growing at a CAGR of 17.33% during the forecast period (2024-2029).

 The COVID-19 pandemic drastically changed the way consumers shop, affecting several verticals of the market. The retail sector witnessed a drastic change due to the pandemic. Consumers increased their use of various sales methods, such as curbside pickup, virtual consultations, contactless payment, and social commerce, i.e., shopping through social media. According to retail experts and shopper surveys, this new behavior is expected to stay during the forecast period. Hence, the demand for digital payment infrastructure improvisation is expected to increase due to the change in shopping behavior caused by the pandemic.

• The country has witnessed waves of digitalization and its diffusion across industries over the past decade. With the presence of connected devices becoming inevitable, the economic and financial landscape has changed significantly. Also, with current digitalization across industries, consumers are increasingly demanding fast, affordable, and safe financial services. Such trends have substantially increased the need for the evolution of payment methods across the world.
• Furthermore, due to the pandemic, Indonesia has seen a surge in digital adoption among consumers and an accelerated growth of both digital payments and e-commerce platforms. According to the Bank Indonesia (BI), the value of electronic money transactions reached IDR 201 trillion (USD 13.95 billion) in 2020, growing by 38.62% from IDR 145 trillion (USD 10.07 billion) in 2019. The adoption of digital and cashless payment methods has, in turn, spurred the growth of the adoption of POS terminals at various payment gateways.
• With the growing digital payment infrastructure in the country, the economic and financial authorities are facing policy challenges in the digital era. Bank Indonesia, in particular, strikes an appropriate balance between efforts to optimize the opportunities afforded through digital innovation with efforts to mitigate the inherent risks.
• For this, the Indonesia Payment System Vision and Indonesia Payment System Blueprint for 2025 provided an unambiguous direction in terms of exploiting digitalization while implementing Bank Indonesia's mandate in terms of currency in circulation, monetary policy, and financial system stability. The Blueprint comprises five visions of the Indonesian Payment Systems 2025, further translated into five major initiatives and manifested into 23 key deliverables implemented in stages from 2019 to 2025.
• With the Indonesia Payment Systems Blueprint 2025, the country aims to make digital innovation accessible for 91.3 million unbanked people and 62.9 million MSMEs in Indonesia to formal economics and finance in a sustainable manner. Thus, all efforts are directed toward a stronger and more evenly distributed Indonesia in the future.

Indonesia Payments Infrastructure Industry Segmentation

The Scope of the report includes: