Shopeepay leads Indonesia’s e-wallet market

by BERNAMA / pic by MUHD AMIN NAHARUL

JAKARTA – Despite being a new player in Indonesia’s digital payment field, ShopeePay, the e-wallet arm of online marketplace Shopee, has become a market leader amid the e-commerce boom during the COVID-19 pandemic.

Established in 2018, it has captured the majority of Indonesia’s digital wallet market share by being on the price offensive, in the form of vigorous discounts and cashback offers, Vietnam News Agency (VNA) reported.

ShopeePay had the highest user penetration at 68 percent, outperforming other e-wallets such as OVO (62 percent), DANA (54 percent), GoPay (53 percent) and LinkAja (23 percent), according to a survey by a market research firm NeuroSensum, which was conducted from November 2020 to January this year. GoPay and OVO have been present in the Indonesian market since 2016 and 2017, respectively.

As a newcomer, ShopeePay rapidly became users’ favourite digital payment solution, said Neurosensum Indonesia research manager Tika Widyaningtyas. This makes ShopeePay a strong contender among other e-wallets in the market, she added.

She went on to say that ShopeePay’s success was due to the platform’s smart user experience and interface, its simplicity of use and the boost of “appetising promotions” for both online and offline consumers.

The pandemic has accelerated e-commerce and contactless payment in the country. With limited physical contact and mobility, more people have opted for online transactions, from shopping to paying bills.

Redseer Southeast Asia recorded growth from 75 million to 85 million online shoppers during the pandemic, with Indonesia’s gross merchandise value (GMV) for 2020 estimated at 40 billion USD, the third-highest in the world.

VNA also reported that Bank Indonesia (BI) has projected record double-digit growth in digital transactions this year, with a notable acceleration of digital banking and e-commerce transactions.

The value of e-commerce transactions is projected to grow by 33.2 percent year-on-year to 337 trillion IDR (US$24 billion) this year from an estimated 253 trillion IDR in 2020.