MasterCard Indonesia to boost online payments

Friday 8 August 2014 13:06 CET | News

MasterCard Indonesia has launched an ecommerce program in cooperation with 14 members of the Indonesian Ecommerce Association (idEA) to help customers pay online.

Under the program, customers of the 14 online shopping merchants, including, Groupon Indonesia and Livingsocial Indonesia will be able to use their MasterCards to pay for their online purchases.

According to MasterCard Indonesia country manager, Irni Palar, Indonesia saw a 30 to 40% growth in online transaction volume from 2012-2013, most of which came from the younger generation. Ecommerce in Indonesia amounted to USD 5 billion in 2014.

An online shopping behavioural study conducted by MasterCard shows that 37.9% of Indonesia’s online transactions still use cash as the payment method of choice, followed by bank transfers at 27.5%. Around 92% of respondents indicated convenience, speed of transaction and security as the three deciding factors in online purchases.

Meanwhile, idEA vice chairman Agus Tjandra estimated the number of online buyers would increase from 4 million in 2013 to 5.7 million in 2014, with a total transaction volume of USD 5 billion. He also predicted that there would be a 500% surge in transaction volume to USD 25 billion in 2016, with 8.2 million online customers.

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Keywords: MasterCard, Indonesia, online payments, Indonesian Ecommerce Association, merchants
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce