Despite its physical size, Indonesia has cemented itself as one of the top 10 largest eCommerce markets in the world. The country is experiencing momentous growth with a 27% YOY increase in eCommerce transaction volume.
Mobile data usage in the country continues to soar as Indonesians spend twice as much time on mobile devices than Americans. Indonesia’s eCommerce market is easily one of the best-kept secrets.
There is plenty of potential in Indonesia. In this article we explore how you can tap into eCommerce and payment trends to grow your business.
Top Indonesian eCommerce and Payment Trends
Indonesia’s market continues to expand. Despite remarkable growth over the last few years, there is untapped potential. We’ve identified five trends to support your business to thrive in the Asian market. Complex strategies are grounded in great research. With that, here are five of the top trends shaping Chinese eCommerce and payments today:
Resellers makeup most of the market
A vast majority of merchants in Indonesia’s digital economy are resellers or distributors. Only a very small fraction of merchants are selling their own products. Fast-moving consumer goods (FMCG) and consumer appliances are the biggest segments for resellers. If you are planning on entering the eCommerce market in Indonesia you should be aware of some of the challenges this market faces which include squeezed margins and pricing influence.
Virtual accounts have become more and more popular
Virtual accounts have single-handedly revolutionized online payments in Indonesia. This payment method has quickly established itself as the country’s most popular alternative payment method.
Unlike traditional interbank transfers, these temporary accounts offer a secure and convenient way to transact without registering the sender’s account number. Merchants can effectively tap into this growing market segment by offering fast, secure, cost-effective cross-border payment options.
Over-the-Counter payments and payouts are widely used
Over-the-counter (OTC) payments remain one of the go-to options for Indonesia. This option allows customers to complete online purchases by interacting with clerks or cashiers at retail outlets such as Indomaret or Alfamart.
OTC payments can be leveraged as a great tool to expand the reach of online businesses.
OTC can help merchants reach customers who are not fully accustomed to digital payment methods.
Indonesia has numerous retail stores serving as OTC payment collection points to bridge the gap between offline and online commerce in Indonesia.
Mobile payment options gain popularity
E-wallets have emerged as a popular option throughout Southeast Asia. They offer a convenient, accessible, and secure solution to complete transactions. Businesses should offer a wide variety of mobile payments in order to tap into a much broader customer base—especially millennials and Gen-Z shoppers.
MassPay Supports Businesses Unlock Potential of Indonesia
Indonesia’s eCommerce market offers endless opportunities for growth. These trends will inform your business in developing a comprehensive strategy to confidently enter the market.
With optimized payment processing, efficient payouts, and a wide range of Chinese payment methods, MassPay empowers businesses to unlock the full potential of China’s thriving eCommerce landscape.
We explore Indonesia’s eCommerce market and payment industry in great detail here—don’t miss out on your chance to establish your spot in this hidden gem.