Digital Payment Users in Indonesia Set to Reach 159 Million by 2025, Says Statista
Rise of Digital Payments in Indonesia
The use of digital payment methods in Indonesia is on the rise, with a significant increase in users expected by 2025. According to a recent report by Statista, the number of digital payment users in Indonesia is projected to reach 159 million by 2025, up from 70 million in 2017.
Key Factors Influencing Adoption
The ease of use, security, and discounts offered by e-wallets are among the key factors influencing the adoption of digital payment methods. The report also highlights that Gen Z is driving the growth of digital payments, with:
- 52.87% of male users aged between 18-24 using digital payment methods
- 47.13% of female users aged between 18-24 using digital payment methods
Indonesia Central Bank’s Visions for Digitalization
The Indonesia Central Bank has launched five visions for the Indonesian Payment System (SPI) 2025, which aim to provide clear direction for digitalization while ensuring the application of Bank Indonesia’s mandate in money circulation and monetary and financial system stability. The five initiatives include:
- Open banking and interlink bank-fintech
- Retail payment development
- Wholesale payment and financial market infrastructure
- National data development, and arrangement
- Supervision, licensing, and reporting for digital financial economy acceleration
Stronger Regulation Crucial for User Trust
Experts believe that stronger regulation is crucial to boost user trust in the digital era. “The government needs to realize the need for stronger regulation to ensure public confidence in digital payments,” said a researcher from the University of Indonesia. “This will require close collaboration between the government, banks, and fintech companies.”
Demand for Secure Payment Systems
As Indonesia continues to move towards a cashless society, the demand for secure and efficient payment systems is expected to rise. The SPI 2025 visions are seen as a step in the right direction towards achieving this goal.
Statista’s Projections
According to Statista, the number of digital payment users in Indonesia is projected to reach:
- 82 million by 2022
- 95 million by 2023
- 108 million by 2024
- 122 million by 2025
(Source: Statista)