Users turned to digital money for e-commerce, mobile SIM top-ups, and public transport.
E-money transactions in Indonesia hit $3.3b (IDR47.2t) in 2018 as fintech firms took advantage of gaps in the financial infrastructure and low financial inclusion to grow their consumer base, according to Fitch Solutions.
As many as 173.8 million digital money instruments have been issued by January 2019, a service which largely leverage on mobile phone numbers for identification. Users embraced digital money instruments for a wide range of consumer needs including e-commerce, mobile SIM top-ups, parking fees and public transport ticketing.
"The e-money and payments segment continues to show strong growth, and consolidation within the sector is positive to improve services and ease competitive pressures," Fitch Solutions said in a report.
Although the country is home to 36 licensed electric money issuers, Indonesia's electronic money landscape is primarily led by two independent players - Go-Pay and OVO - and one operator-led service called G-Cash as banks lag behind third-party players and have only started responding to the digital threat with the planned rollout of a mobile wallet service called LinkAja.
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