Digital Payments in Indonesia: The Methods and The Benefits for Indonesian Businesses

Written by
Ekky Pramana
Last Modified on
March 7, 2024

The rapid changes and developments in technology, as well as the digital transformation in Indonesia and abroad, have given rise to many innovations, one of which is in the financial aspect through various digital payment methods. This rapid change has created a high demand in society for secure, fast, efficient, and inclusive payment methods, ultimately forcing business owners to adapt and provide various forms of digital payment methods that are gradually replacing traditional cash payments. The COVID-19 pandemic in 2020 was also a contributing factor that accelerated the transition process of existing payment methods, where business players had to adapt to digital payment methods due to government policies aimed at reducing physical contact by prioritizing cashless payments.

According to data from Bank Indonesia, there has been an increase in the number of digital transactions in Indonesia. One indicator is the data on the use of electronic money. In 2018, the value of electronic money usage was only IDR 106.78 trillion, while in 2019, it increased to IDR 473 trillion and further to IDR 504.9 trillion in 2020. In 2022, the transactions involving electronic money reached IDR 1,177.8 trillion. From the existing data, we can conclude that an increasing number of Indonesian individuals and businesses have adopted digital payment methods in their activities.

What is Digital Payment?

Digital payment can be defined as a form of payment system conducted through digital or online modes, without involving the exchange of physical cash. The transactions typically involve transferring a certain amount of money from one account to another through a specific application, and the process involves digital devices such as mobile phones, computers, credit cards, debit cards, or electronic data capture (EDC) machines.

As per data reported by Statista, Indonesia is the fourth-largest country in the world in terms of smartphone users, with approximately 190 million smartphone users, which is one of the reasons why the use of digital payment in the country continues to rise. This also makes digital payments more easily accessible to the Indonesian population in various locations around the world.

What are the most popular digital payment methods in Indonesia?

Some of you might be wondering, what digital payment methods are popular among Indonesians? At least there are several examples of popular or widely used digital payment methods in Indonesia, including:

Debit Cards

Debit cards, often referred to as bank cards, are payment cards usually issued by banks and are typically directly linked to the balance in your bank account. Debit cards can be used for payments and also to withdraw funds from your bank account through ATMs. In digital payments, payments with debit cards are usually made through Electronic Data Capture (EDC) machines. To obtain an EDC machine, a business usually needs to register with a specific bank.

Credit Cards

Similar to debit cards, credit cards are payment cards issued by banks or other financial institutions. Unlike debit cards, this popular digital payment method is not linked to a specific account but is a form of credit provided by the bank or financial institution, resulting in an obligation for users to settle bills and other administrative fees periodically issued. In digital payment methods, payments with credit cards are also typically processed through EDC machines issued by specific banks or financial institutions.

Mobile Banking

Mobile Banking is the most common and popular digital payment method in Indonesia, where buyers can transfer money within the same bank or across different banks through smartphone applications developed or issued by each bank. Moreover, through these applications, users can also make daily bill payments, ranging from utilities bills to purchasing mobile credit.


With the development of technology and the banking industry in Indonesia, there is an increasing number of digital wallets or e-wallet providers in the country. This supports e-wallets as a new trend in digital payments in Indonesia. Through e-wallet applications such as Gopay, OVO, Dana, and others, users can store money in their e-wallet app and use it for various payments. Additionally, to attract users, many e-wallet providers collaborate with various merchants both domestically and internationally, offering cashback or discounts for users in every transaction.


QRIS, an abbreviation for Quick Response Code Standard, aims to unify various digital payments organized by various Payment System Service Providers (including e-wallet providers/digital wallets) using QR codes. This payment system was introduced by Bank Indonesia at the end of 2019. Since January 1, 2020, all payment service providers have been required to adopt QRIS as part of the Vision for the Indonesian Payment System 2025.

Currently, QRIS has become a popular choice for many people for digital payment methods because it accommodates interbank payments and digital wallet platforms. Its easy application without requiring businesses to have Electronic Data Capture (EDC) machines makes QRIS one of the inclusive digital payment methods. The implementation of QRIS is expected to assist businesses in Indonesia, especially for micro, small, and medium enterprises (MSMEs).

Benefits of Digital Payments for Businesses and MSMEs

As a business owner and participant in Micro, Small, and Medium Enterprises (MSMEs), you might wonder if your business needs to offer digital payment options to your customers. Here are several reasons to consider before deciding to implement a digital payment system for your business:


By adopting digital payment methods, your business transactions can be processed quickly, and all transactions are well-documented. For those with retail businesses, embracing digital payments eliminates the need to deal with providing change and also speeds up employee shift turnovers.

Well-documented Financial Transactions

One advantage of digital payments over cash transactions is that all transactions are recorded systematically through the existing system. This saves time and effort for your financial department employees by reducing the need for manual record-keeping checks. Digital payments also enable business owners to monitor cash flow and transactions in real-time, allowing for quicker financial analysis and decision-making without waiting for reports.

Broader Market Reach

If you have an online business or are considering marketing your MSME online, adopting digital payment methods allows your business to reach consumers from various regions in Indonesia.

Enhanced Security

Another advantage of digital payments is the enhanced security system. This is possible because all transactions are recorded and can be monitored in real-time, reducing the risk of fraud and embezzlement. Moreover, digital payments usually come with robust verification systems, minimizing the possibility of misuse by other parties.

Aspire Payment Gateway as your trusted partner in growing your business

As a partner in growing your business, Aspire also offers a payment gateway service to support the digitization of your enterprise. The digital payment system provided by Aspire allows you to receive payments digitally through various payment methods with transparent and competitive MDR and transaction fees. This can help your business reach more clients from various regions in Indonesia. The digital payment methods offered by the Aspire payment gateway include Credit Cards, Transfers to Virtual Accounts, various e-wallets, QRIS, and various other digital payment options. Interested in learning more about how the Aspire payment gateway can be a solution for growing your business? Learn more about the Aspire payment gateway here.

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About the author
Ekky Pramana
is a seasoned writer specialising in business finance and management. With a writing history at Tech in Asia, Teknoverso, and various other publishers, he leverages his market expertise to empower and educate first-time founders in managing their businesses better.
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