Boosting the fintech industry growth in Indonesia, the number of new e-wallet users is projected to uplift to 116.8 million in 2021 – 2026, along with the surge of QRIS utilization.
Heaptalk, Jakarta — Indonesia’s financial technology sector is estimated to possess promising growth, particularly in this post-pandemic era. The Digital Competitiveness Index of East Ventures report revealed that this positive prospect is highly related to digital transactions, financial literacy, and financial inclusion.
The report revealed a remarkable increase in digital transactions by up to 32%, attaining US$78 billion in 2022, compared to the former of US$ 32 billion in 2019. This growth is accompanied by a 17% rise in financial literacy and a substantial 20% improvement in financial inclusion, which indicates progress in awareness and access to financial tools for more excellent economic stability and prosperity.
One of the primary driving factors of fintech enhancement in the archipelago is the rapid adoption of digital payment platforms. These platforms, such as e-wallet, internet banking, and Quick Response Code Indonesia Standard (QRIS), have simplified the transformation from traditional offline to online financial activities.
During the pandemic, strict restrictions, such as lockdowns and social distancing, expedited the behavior adjustment of online shopping, turning e-commerce into a new tool for consumers and business activity. As a result, the report noted the growth in e-commerce adoption up to 40% YoY in the H1 of 2022.
After experiencing significant transactions during the pandemic, Indonesia also retained e-commerce GMV enhancement worth US$52.7 billion in 2022. The output is projected to increase to US$64.4 billion in 2023, which is also boosted by the rise of new users of 9.8% and an average income of each user of 11.5% in 2023.
Moreover, around 53% of e-commerce users prefer to use an e-wallet to make their transactions, which indicates a high trust of society in digital payment. Before the onset of the pandemic, digital wallet usage stood at only around 10%. Nevertheless, the trend significantly grew in e-wallet utilization, reaching 44% this year.
As one of the driving factors of the growth of Indonesia’s fintech industry, the report stated that the number of new e-wallet users is also projected to uplift to 116.8 million in 2021 – 2026. This prediction would also be along with the surge of the QRIS utilization, with the total volume up to 282 million transactions.
“Progress, challenges, and collaborative solutions mark the country’s journey toward equitable inclusion through fintech. With strategic governmental initiatives, innovative fintech players, and an increasing societal embrace of digital finance, Indonesia is well on its way to becoming a more financially inclusive and empowered nation,” East Ventures said.
