Low take-up rate of mobile #payment service in Indonesia

mobile payment card telco

As reported in The Jakarta Post, it seems that the mobile operators are keen for their consumers to start paying for their purchase using their mobile phones, however the take up rate for mobile payment in Indonesia is still quite low. For example, the biggest mobile phone operator in the country, Telekomsel, which has over 100 million users, only have 8 million of their users signed up to use their mobile payment service – Tap-Izzy and T-Cash.

One of the main challenges to a successful mobile take up rate is the lack of places/avenues where the average user can pay using their mobile phones. Currently the most common usage of mobile payment solutions is to top up or pay for the use of the mobile services. Even then this service is mainly used by a small section of the Indonesian society. According to Telekomsel, most of the users using this service are 25 to 40 years of age and living in "small cities at the district level". Therefore mass consumption of the service is still far from being deemed as achievable.

Industry observers note that a lot more could be done to make it a more common payment option. For example, they could increase the visibility of their service offer at touch points. Also, they can make the e-wallet with phone credits. However, this has not been legally approved as the mode of payment should be money and not phone credit.

If you would like to find out more about the usage of mobile payments  in South East Asia, join us at Cards & Payments Asia 2012 from 25 – 27 April in Singapore. Download our brochure here to find out more!

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