Jakarta, 15 January 2020 – Ipsos Indonesia, an independent marketing research company, launched a research on Indonesian’s habit of using digital payment tools. Mr Andi Sukma as Event Director of Ipsos Marketing Summit formally opened the event and Mr Sudarto – Expert Staff in the Republic of Indonesia Ministry of Finance gave his keynote speech titled ‘’Payment Evolution From Government Perspective : The Regulations and Monitoring ‘’
In a survey conducted among 1,000 respondents residing in the islands of Java (66%), Sumatra (21%), Kalimantan (6%), Sulawesi (4%), Bali (4%) and Nusa Tenggara (1%), there were some interesting discoveries; 25% of respondents used digital payment because of the enjoyable experience and 26% of them felt safer, more comfortable and confident in doing so.
This was revealed in the event of Ipsos Marketing Summit 2020: Indonesia The Next Cashless Society today. “The background of the research is due to the phenomenon of cashless society in Indonesia, in which according to the data from the Bank of Indonesia, in 2019 alone, there were 4.7 million cashless transactions and 128 trillion volume of cashless transactions in Indonesia, thus the financial evolution is happening rapidly,” said Soeprapto Tan, Managing Director Ipsos Indonesia.
The study of The Next Cashless Society focused on the research of the society’s habits, millenials and non-millenials in using non-cash payment. The study was conducted by distributing online questionnaires to Ipsos’ panel online respondents in December 2019 all over Indonesia. The reason for using online panel was because that members of online panel have internet access, and they can be considered as netizens.
The result of this study indicated that 21% of consumers only use one digital wallet, whereas 28% use two digital wallets and 47% use three or more digital wallets, the most used digital wallets are OVO and Gopay.
The research also found respondents’ habits in using non-cash cards, E-Money and Flazz being the most frequently used cards for transactions, 47% of them only have one card, 30% has two cards and 23% owns three or more non-cash cards.
Users are making use of non-cash transactions to do various financial transactions, such as online shopping, payment of electricity bills, payment at the restaurant, payment for public transportation, watching movies and other digital banking services.
On that note, Director of Digital Financial Innovation OJK, Tris Yulianta, explained that Indonesia has a great potential for digital economy. OJK, according to him, is very optimistic that digitalisation will signal a better change to the economy in the future.
From the Bank of Indonesia, Deputy Director of System Payment Policy Department Bank Indonesia, Yosamartha stated the need for a vision of integration concept of digital finance. “The most important is the synergy between regulator and digital payment industry to learn together to create a good ecosystem to help the society with high level of security,” said Yosamartha.
Motivation to use non-cash payment
This study revealed a number of consumer segments and characters in using non-cash payment, they are consumers who are not afraid of paying using non-cash (reassure), consumers who enjoy non-cash payment and they see it as enriching to their lives (encourage) and consumers who think that non-cash payment is something new and up-to-date (inspired).
In the Reassure segment, 26% of respondents felt sure, safe and comfortable in using non-cash payment and it is one of the biggest drivers for them to make digital transactions.
In response to the survey result, the Marketing Director of LINKAJA, Edward Kilian Suwignyo saw this as something positive. “This result is very encouraging, because when we are talking about security and practicality, there is solution for the people when they start shifting from cash to cashless. This finding indicated that the solution is now apparent in the society,” he added.
In the Encourage segment, 25% of the respondents use non-cash because they enjoy the experience and 9% of respondents use non-cash payment to build rapport with other people.
In the Inspired segment, 11% of the respondents are new users to the non-cash and pursuing various benefits, and 10% of the consumers desire better and more convenient non-cash products.
Economic observer and official partner of Ipsos, Yustinus Prastowo, stated that this development should be supported by the government. The government should be be actively involved, as well as being an accelerator, to accelerate and introduce agile and dynamic policies, and to build good ecosystem and environment. "It’s important for BI, OJK and the Ministry of Finance to be in synergy in order for the three pillars to move and interact well,” Yustinus added.
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