ShopeePay is in full swing, leading the Indonesian electronic payment market!

Although a new entrant into Indonesia’s digital payments space, ShopeePay , the e-wallet arm of online marketplace Shopee , has emerged as a leader in the booming e-commerce market during the COVID-19 pandemic .

ShopeePay was launched in 2018 and has captured most of Indonesia's digital wallet market share through a price offensive in the form of heavy discounts and cash back offers, according to Vietnam News Agency ( VNA).

According to a survey conducted by market research firm NeuroSensum between November 2020 and January this year, ShopeePay has the highest user penetration rate of 68%, which is better than other e-wallets, surpassing OVO (62%), DANA (54%), GoPay (53%) and LinkAja (23%). GoPay and OVO entered the Indonesian market in 2016 and 2017 respectively.

Neurosensum Indonesia research manager Tika Widyaningtyas said ShopeePay quickly became the most popular digital payment solution among users after its launch in 2018. This makes ShopeePay a strong competitor to other e-wallets in the market, she added.

She went on to say that ShopeePay’s success was attributed to the platform’s smart user experience and interface, its simple method of use , and its push for “attractive promotions” for both online and offline consumers .

During the epidemic, the traditional offline sales model was hit. Internet users who were confined at home were unable to make offline purchases, and the "stay-at-home" mode was turned on across the country. The epidemic accelerated the development of e-commerce and contactless payments in the country . Due to limited physical contact and limited mobility, more and more people chose to trade online, from shopping to paying bills.

Redseer Southeast Asia recorded an increase in the number of online shoppers from 75 million to 85 million during the pandemic , with Indonesia's gross merchandise value (GMV) estimated at US$40 billion in 2020, ranking third in the world.

VNA also reported that Bank Indonesia (BI) expects digital transactions to achieve record double-digit growth this year, with digital banking and e-commerce transactions accelerating significantly.

E-commerce transaction value is expected to grow to 337 trillion rupiah (US$24 billion) this year from 253 trillion rupiah in 2020, a year-on-year increase of 33.2%.

Indonesia

E-commerce

Payment