Market Research Reports, Inc. has announced the addition of “Mobile Payments in Indonesia” research report to their website http://www.MarketResearchReports.com
Lewes, DE -- (SBWIRE) -- 04/17/2015 -- Indonesian Demographic Profiles: Indonesia, with its huge unbanked population, more than 75% of total population in 2014, is certainly an attractive country for mobile payments especially in Java & Sumatra islands, amongst the significant number of young generations (15 – 29 years old). The rapid increase of mobile penetration is dominated by three providers (Telkomsel, Indosat, and XL).
Incoming Remittances: Incoming remittances continued to grow at a consistent rate from 2012 – 2014 (CAGR 6.2%) and is likely to continue increasing at steady rate (CAGR 8.5%) towards 2020 with 2014 market size of USD 5.9 million. 35% of incoming remittances were captured by top 4 banks (BRI, BNI, Mandiri, & BCA). The major sources of incoming remittances were from Malaysia, Saudi Arabia, Hong Kong, and Taiwan, in-line with the popular destination countries of Indonesian Overseas Workers (TKI).
Outgoing Remittances: Outgoing remittances continued to grow at a rapid rate from 2009 – 2014 (CAGR 22.1%) and will potentially grow at a steady rate (CAGR 19.0%) towards 2020 with 2014 market size of USD 1.5 million. Japan, South Korea, USA, and China are the top destinations for outgoing remittances, in-line with the origin countries of major foreign workers. Jakarta, Bandung, Surabaya, Semarang, and Medan are the main sources of outgoing remittances.
Domestic Remittances: Domestic remittances consist of RTGS (Real Time Gross Settlement) & Clearing systems. In 2014, value of RTGS is USD 4.6 trillion and Clearing is USD 0.2 trillion.
Common Payment Method (Debit, Credit, Cheque & Pre-paid Cards): Non-cash payment transactions are predominantly contributed by debit card transactions (USD 117.7 billion) while other non-cash methods are credit cards (USD 7.6 billion), cheque (USD 13.4 billion), and mobile banking transactions (USD 2.3 billion). BCA and Bank Mandiri hold the largest shares in the overall mobile banking transaction value at 40% and 35% respectively. Total mobile banking registered users is 8 million with 50 – 60% of them being active users. In terms of pre-paid card, Bank Indonesia has so far approved 4 pre-paid card issuers: BCA (Flazz), Bank DKI (Jackard), PT Telkom (I VAS), and Telkomsel (T-Cash).
Mobile Payment: The mobile payment is an attractive market with potential new players expressing their interest to enter this market. Telkomsel (T-Cash) is the first and so far only player in the mobile payment market, featuring: cash in (top-up), cash out, and merchant payment services. T-Cash is however stilllimited to selected network of merchants. Some constraints arise in the early development of mobile payment. These are: limited geographic coverage, limited network of merchants, technical issues in merchants, and few marketing activities to create awareness.
Current Remittance Behavior and Experience: Most use cash, especially for everyday small purchases. Credit card and debit cards are also used, mainly in modern stores and for bigger amounts. Money transfers are preferred for overseas transactions Many reasons for liking cash – no need to worry about debt, assurance that payment is successfully made, instant gratification, thrill and excitement, sense of pride. For the merchants, it also means not having to worry about bad debt. However, cash invites crime.
Credit & debit cards and money transfer are safer transaction options and less hassles; but used less frequently than cash Mobile banking – used less although all are aware of its facilities and convenience. Concerned about the security and reliability of the system
Choice of Service Providers: Good provider is able to guarantee the quality of the system – the ability to make a transaction whenever, whereever. Criteria used to decide on service providers include (1) reputation – well known (2) security, a guarantee that the system is fail proof (3) Wide coverage (4) customer service (5) price
P2P Proposition Drivers: Drivers: (1) unique and innovative – transaction without a bank account (2) practical – anytime, anywhere (3) no need for hard cash (4) no need for bank account (5) looks cool. Additionally, for merchants, increase business
P2P Proposition Barriers: Concerns: (1) security – hacking, wrong transaction, (2) reluctance to change provider; or change phone number (3) reputation of the providers – bank and Telco (4) coverage (5) compatibility of handset. Additionally, for merchants, getting money from Telco provider or bank may be a complicated process, and privacy
P2P Proposition Purchase Intention: Interest in the proposition is high but there seems to be a wait and see attitude to assess the quality of the infrastructure and the level of services provided.
Consumers want to make sure that it can be used with many merchants and covers all areas, merchants want to be sure that it's a secure and trustworthy system Price indication – price of a SMS
Spanning over 144 pages, "Mobile Payments in Indonesia" report covers the Indonesia's Demographic Profiles, Remittances, Payment Methods (Non-Cash), Consumer Insights, Strategic Recommendations, Appendices.
For further information on this report, please visit- http://www.marketresearchreports.com/vbi-solution/mobile-payments-indonesia
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