Indonesia—Southeast Asia’s largest economy and fourth-most populous nation—is leapfrogging cards and banking to become one of the most vibrant digital payment markets in the world. A sprawling archipelago of 17,000+ islands, Indonesia is fast transforming from a cash-reliant economy to a mobile-first, QR-powered, real-time payments ecosystem.
Let’s dive into how Indonesians are paying in 2025.
🔹 Snapshot of the Indonesian Payment Landscape
| Metric | Stat (2025 est.) |
|---|---|
| Population | ~280 million |
| Internet Penetration | ~77% |
| Smartphone Penetration | >75% |
| Banked Population | ~55% |
| Financially Included (incl. walletsWallets wallets See Digital Wallets.) | ~85% |
| Digital Wallet Users | >180 million |
| Cash Usage (by value) | <20%, mostly rural |
| Real-Time Payments (BI-FAST) Volume | ~1.5 billion transactionsTransactions transactions Interactions where value is exchanged for goods or services./year |
🏦 National Infrastructure: A Central Bank–Led Innovation Story
✅ BI-FAST (Launched 2021)
- Indonesia’s real-time retail payment system, led by Bank Indonesia (BI)
- 24/7/365 transfers, initially for interbank payments, now expanding to billers and merchants
- Integrates with QRIS, mobile wallets, and banks
✅ QRIS (Quick Response Code Indonesian Standard)
- National QR code standard for all merchants and wallets
- Over 26 million merchants now accept QRIS (2025)
- Enables interoperable QR payments between banks and e-wallets (e.g., DANA → BCA merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services.)
✅ GPN (Gerbang Pembayaran Nasional)
- Indonesia’s domestic card network, to reduce dependency on VisaVisa visa A leading global payment technology company connecting consumers, businesses, and banks./MastercardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders.
- Still in early adoption, used more in traditional banking and POS terminals
💳 How Indonesia Pays in 2025: Key Payment Methods
| Payment Method | Popular Brands / Systems | Market Share (2025 est.) |
|---|---|---|
| QR Payments (QRIS) | Integrated with GoPay, OVO, DANA, ShopeePay | ~50% of in-store and micro-merchant transactions |
| E-Wallets | GoPay, OVO, DANA, ShopeePay, LinkAja | ~30% of digital payments |
| Bank Transfers (BI-FAST) | Mandiri, BCA, BNI, BRI, etc. | ~15% of P2P and bill payments |
| Cards | BCA, Mandiri, GPN, Visa/Mastercard | ~5% of overall usage (mostly urban, mid/high income) |
| Cash | Still used in informal sectors and rural areas | ~15–20% by value |
📱 Digital Wallet Dominance
Indonesia’s mobile wallets are deeply integrated into daily life:
- Used for: ride-hailing, e-commerce, in-store QR payments, bill payments, donations
- Loyalty, cashback, and gamification drive stickiness
- Wallets often linked to bank accounts via BI-FAST or to top-ups via agent networks
🌟 Top Wallets:
- GoPay – Linked to Gojek super app
- OVO – Linked to Grab and Tokopedia
- DANA – Backed by Ant Financial
- ShopeePay – Linked to e-commerce giant Shopee
- LinkAja – State-owned, used for tolls, transit, utilities
🔒 Regulation and Financial Inclusion
✅ Bank Indonesia’s Vision:
- Promote cashless economy & digitization of MSMEs
- Reduce reliance on foreign card networks
- Interoperability between banks, wallets, telcos, and fintechs
✅ OJK (Otoritas Jasa Keuangan) & Bank Indonesia
- Licenses: PJP (Payment System Providers) and PSP (Payment Service Providers)
- Compliance required for eKYC, data localization, and real-time fraudFraud fraud Criminal deception involving unauthorized payments or use of financial credentials. monitoring
🤝 Interoperability is Key
Indonesia is becoming a model for digital payments interoperability:
- QRIS makes all wallets work across all merchant QR codes
- BI-FAST enables low-cost, instant transfers between banks and wallets
- Real-time data APIs are opening up new B2B, invoice, and supplier payments use cases
🌍 Cross-Border Ambitions
Indonesia is part of ASEAN’s real-time corridor:
- Linked with Malaysia’s DuitNow, Thailand’s PromptPay, and Singapore’s PayNow
- Goal: Seamless real-time cross-border QR and A2A transfers for remittances and trade
🔮 What’s Next in Indonesia?
- CBDC Pilot – Bank Indonesia is exploring a digital Rupiah
- Offline Payments via QR and NFC for rural areas
- Buy Now, Pay Later (BNPL) expansion through Akulaku, Kredivo, and Shopee
- QRIS Tuntas – Expansion of QRIS for B2B, salary, tax, and invoice payments
- Open Finance – Bank Indonesia is laying the foundation for data sharing and APIs
🔚 Summary: A Leapfrog Nation
Indonesia’s payments ecosystem is a leapfrog story:
- From low banking penetration → to 180M+ digital wallet users
- From cash reliance → to QR-first transactions via QRIS
- From bank silos → to real-time interoperability through BI-FAST
In 2025, Indonesia is no longer catching up—it’s leading with a mobile-native, interoperable, inclusive payments model for the world to learn from.
Vibhu Arya is a fintechFintech fintech
Short for financial technology, refers to tech-enabled innovation in financial services. and payments expert with 15+ years of experience simplifying how money moves across digital and retail ecosystems. He’s led strategy and partnerships at Citibank, Adyen, and IKEA, and helped scale fintech startups (Snapdeal, iPaylinks) to $1B+ valuations. Vibhu’s expertise spans cards, crypto, cross-border, and real-time payments. He is the founder of PaymentsPedia.com, where he writes about the future of payments.
📧 vibhu@paymentspedia.com | LinkedIn