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Register a team of 3 in charge
of growing your payments
business at only $7950.
CALL +65 6809 3910
FAX +1 646 513 4296
EMA...
Part 2 will discuss:
• ecommerce sites that are already
making money
• why Indonesian customers hesitate
about paying onli...
In 2013, Amazon was the most popular B2C site
in Indonesia. Despite having no local presence,
pricing or logistics support...
Lazada Indonesia, Rocket Internet’s answer to Amazon,
made the jump to the top spot in 2014. This comes after their
rebran...
Lazada is also better at serving the local
market with native language marketing
campaigns, same day delivery and a variet...
Zalora, Rocket Internet’s fashion venture, is another big
player in the local market. Operating in ten countries
throughou...
Tapping on the potential of Indonesia, Japan also entered the market
with Rakuten Belanja Online, a standalone subsidiary ...
Kaskus is the leader of online forums in Indonesia. As of May
2014, it reported to have over 6.8 million registered users ...
Kaskus’s biggest competitor is OLX,
formerly known as TokoBagus. It is the
largest eCommerce platform and
Indonesia’s thir...
Of special mention is the consumer-to-consumer (C2C) marketplace
Tokopedia. Claiming to be the biggest eCommerce site in I...
JOIN THE DISCUSSION
Former Yahoo!
Indonesia CEO and MNC
media network People
Leader, Roy
Simangunsong chairs a
session on ...
ONLINE PAYMENTS
Online payments in Indonesia are low,
with credit card penetration at only
4.5%.
Businesses must therefore...
KEY CHALLENGES
FOR INDONESIA
CUSTOMER HESITANT
ABOUT ONLINE PAYMENTS
Challenge for Brands
Online payments in Indonesia are low,
with credit card penetration at only
4.5%.
Businesses must ther...
Indonesians most risk
averse in ASEAN
Compared across the Southeast
Asian region, Indonesians are
the least likely to make...
Challenge for Brands
Online payments in Indonesia are low,
with credit card penetration at only
4.5%.
Businesses must ther...
Just for RESEARCH
Indonesians tend to use the
internet mainly for research -
80% go online for price
comparisons before bu...
FEAR of FRAUD
A 2013 Nielsen survey
revealed that the biggest
obstacle to eCommerce was
the customers’ fear of fraud,
with...
Credit Card Info is a
prized possession
According to the survey, six out of ten
consumers said they were unwilling to
prov...
A TIP FOR ECOMMERCE
ENTRANTS: HAVE A SECURE
PAYMENTS CHANNEL
Data and payment security
is therefore a key
consideration fo...
13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA
Follow @PaymentsAsia
Register at payments@arcmediaglobal.com!
MEET
INDONESIA’S
PAY...
the challenge of selling
online in indonesia
21.5% of consumers were
not comfortable making a
purchase before they could
t...
ORDER ONLINE THEN CALL
TO VERIFY
While the average European fashion
website receives customer queries on only
5% of orders...
Need for More Widely
Accepted Payment
Methods 

THE CHALLENGE ON
PAYMENT COLLECTIONS
Given Indonesians’ preference for
traditional payment methods, such
as Cash on Delive...
PIN IS MIGHTIER THAN
THE PEN.
Many newer forms of payment such as internet
banking are not widely used and customers
typic...
BREAKDOWN OF PAYMENT
METHODS IN INDONESIA
PAYMENT INNOVATION
HOLDS THE KEY.
With Indonesia’s eCommerce
sector having a low uptake of
credit cards, local eCommerce
p...
not cool to only have
one payment channel.
Travel website Tiket.com offers
14 different methods to make a
payment, more th...
ecosystem specific
payments
Kaskus took it a step
further, by creating their
own payment system for
their C2C marketplace.
behold free delivery
Other sites such as Bhinneka use free
delivery within Jakarta to encourage
customers to make online t...
13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA
Follow @PaymentsAsia
Register at payments@arcmediaglobal.com!
e-WALLET IS TRENDING
Need for Sophisticated
Logistics Solutions for
eCommerce Businesses
CAN YOU CONNECT over
17000 islands?
Indonesia’s infrastructure is a
challenge to both businesses
and customers alike. Rapi...
WANTED: RELIABLE SUPPLY
CHAIN PARTNER
This growing demand for more sophisticated logistics
solutions for eCommerce busines...
WANTED: RELIABLE SUPPLY
CHAIN PARTNER
With this increase in online
shoppers, eCommerce businesses
need to work closely wit...
MEET INDONESIA’S
RETAIL BANKING
MOGULS
13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA
Register at payments@arcmediaglobal.com!
Fo...
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Indonesian Payment Challenges 2015

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Indonesian Payment Challenges 2015

  1. 1. Register a team of 3 in charge of growing your payments business at only $7950. CALL +65 6809 3910 FAX +1 646 513 4296 EMAIL payments@arcmediaglobal.com WEB arcmediaglobal.com/payments FOLLOW @PaymentsAsia 13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA Follow @PaymentsAsia THE CHALLENGE IN INDONESIAN PAYMENT CHANNELS AND HOW YOU CAN SOLVE IT - PART 2
  2. 2. Part 2 will discuss: • ecommerce sites that are already making money • why Indonesian customers hesitate about paying online? • what solutions that ecommerce businesses can employ to overcome this • actionable insights going forward (Source: SP eCommerce/Bank Mandiri Indonesia Economy Update 2015/KPMG Mobile Payments)
  3. 3. In 2013, Amazon was the most popular B2C site in Indonesia. Despite having no local presence, pricing or logistics support, their breadth of products drew the highest amount of visitors.
  4. 4. Lazada Indonesia, Rocket Internet’s answer to Amazon, made the jump to the top spot in 2014. This comes after their rebranding in 2014 that showed a shift of focus away from consumer electronics to a larger range of lifestyle products.
  5. 5. Lazada is also better at serving the local market with native language marketing campaigns, same day delivery and a variety of custom payment revenue.
  6. 6. Zalora, Rocket Internet’s fashion venture, is another big player in the local market. Operating in ten countries throughout Asia Pacific, their Indonesian store accounts for the largest share of revenue across the group.
  7. 7. Tapping on the potential of Indonesia, Japan also entered the market with Rakuten Belanja Online, a standalone subsidiary of the Japanese giant Rakuten operating locally. In a culture with such distinct characteristics and low levels of risk-taking, a localized strategy such as adding an Indonesian word Belanja (which means expenditure) to a company name increases approachability and trust.
  8. 8. Kaskus is the leader of online forums in Indonesia. As of May 2014, it reported to have over 6.8 million registered users that create 4,000 new threads every day. The site also sees more than 750 million page views and 25 million unique visitors every month. A visitor typically spends about 29 minutes on the site every day.
  9. 9. Kaskus’s biggest competitor is OLX, formerly known as TokoBagus. It is the largest eCommerce platform and Indonesia’s third largest local website.
  10. 10. Of special mention is the consumer-to-consumer (C2C) marketplace Tokopedia. Claiming to be the biggest eCommerce site in Indonesia, they are drawing ten million monthly visitors with shoppers buying a total average of two million products a month in 2014. From the businesses already present, it is clear there is a local audience ready for eCommerce, even if it is still in the early stages of development.
  11. 11. JOIN THE DISCUSSION Former Yahoo! Indonesia CEO and MNC media network People Leader, Roy Simangunsong chairs a session on “What’s the Future of Retail Payments? 1440H, 13 August 2015 at PSRA 2015, Le Méridien Jakarta. 13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA Follow @PaymentsAsia
  12. 12. ONLINE PAYMENTS Online payments in Indonesia are low, with credit card penetration at only 4.5%. Businesses must therefore present themselves as being reliable and trusted online retailers by prioritizing data and payment security.
  13. 13. KEY CHALLENGES FOR INDONESIA
  14. 14. CUSTOMER HESITANT ABOUT ONLINE PAYMENTS
  15. 15. Challenge for Brands Online payments in Indonesia are low, with credit card penetration at only 4.5%. Businesses must therefore present themselves as being reliable and trusted online retailers by prioritizing data and payment security.
  16. 16. Indonesians most risk averse in ASEAN Compared across the Southeast Asian region, Indonesians are the least likely to make an online purchase due to their risk averse nature.
  17. 17. Challenge for Brands Online payments in Indonesia are low, with credit card penetration at only 4.5%. Businesses must therefore present themselves as being reliable and trusted online retailers by prioritizing data and payment security.
  18. 18. Just for RESEARCH Indonesians tend to use the internet mainly for research - 80% go online for price comparisons before buying in-store, compared to the regional average of 60%.
  19. 19. FEAR of FRAUD A 2013 Nielsen survey revealed that the biggest obstacle to eCommerce was the customers’ fear of fraud, with 34.6% of customers citing this as a reason for not making an online purchase.
  20. 20. Credit Card Info is a prized possession According to the survey, six out of ten consumers said they were unwilling to provide credit cards details online. Another study by Google in 2013 revealed that customers’ lack of trust in credit card security on mobile devices was the top reason for not purchasing online via their smartphones.
  21. 21. A TIP FOR ECOMMERCE ENTRANTS: HAVE A SECURE PAYMENTS CHANNEL Data and payment security is therefore a key consideration for businesses to present themselves as being reliable and trusted online retailers.
  22. 22. 13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA Follow @PaymentsAsia Register at payments@arcmediaglobal.com! MEET INDONESIA’S PAYMENTS ECOSYTEM
  23. 23. the challenge of selling online in indonesia 21.5% of consumers were not comfortable making a purchase before they could touch and feel the quality of the items they were buying.
  24. 24. ORDER ONLINE THEN CALL TO VERIFY While the average European fashion website receives customer queries on only 5% of orders, Zalora in Indonesia receives an average of one phone call or message per order from concerned customers to confirm if their request has been received, a strong indicator of customers’ concerns with online shopping.
  25. 25. Need for More Widely Accepted Payment Methods 

  26. 26. THE CHALLENGE ON PAYMENT COLLECTIONS Given Indonesians’ preference for traditional payment methods, such as Cash on Delivery, eCommerce businesses entering Indonesia may find payment collections challenging, especially if they are used to online payment systems.
  27. 27. PIN IS MIGHTIER THAN THE PEN. Many newer forms of payment such as internet banking are not widely used and customers typically choose to make payments directly through an ATM to a retailer’s account. This also results in consumers often deciding to simply walk into a brick-and-mortar store and buy a product immediately, instead of making the final purchase online through a credit card.
  28. 28. BREAKDOWN OF PAYMENT METHODS IN INDONESIA
  29. 29. PAYMENT INNOVATION HOLDS THE KEY. With Indonesia’s eCommerce sector having a low uptake of credit cards, local eCommerce players have developed unique payments solutions.
  30. 30. not cool to only have one payment channel. Travel website Tiket.com offers 14 different methods to make a payment, more than any other online store in Indonesia.
  31. 31. ecosystem specific payments Kaskus took it a step further, by creating their own payment system for their C2C marketplace.
  32. 32. behold free delivery Other sites such as Bhinneka use free delivery within Jakarta to encourage customers to make online transactions. Theses increased payment options have also increased the growth of Indonesia’s eCommerce ecosystem as a whole.
  33. 33. 13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA Follow @PaymentsAsia Register at payments@arcmediaglobal.com!
  34. 34. e-WALLET IS TRENDING
  35. 35. Need for Sophisticated Logistics Solutions for eCommerce Businesses
  36. 36. CAN YOU CONNECT over 17000 islands? Indonesia’s infrastructure is a challenge to both businesses and customers alike. Rapid urbanization has resulted in increased traffic congestion, driving people to shop online.
  37. 37. WANTED: RELIABLE SUPPLY CHAIN PARTNER This growing demand for more sophisticated logistics solutions for eCommerce businesses will lead to further investments of global and regional logistics players in the country. An example of such an investment is the agreement between Singapore Post and Pos Indonesia, who have come together to improve the distribution and delivery of international postal items so as to cater to the growth in eCommerce traffic and strengthen the regional eCommerce logistics network.
  38. 38. WANTED: RELIABLE SUPPLY CHAIN PARTNER With this increase in online shoppers, eCommerce businesses need to work closely with an experienced and reliable logistics and supply chain partner to ensure timely delivery of goods to their end customers.
  39. 39. MEET INDONESIA’S RETAIL BANKING MOGULS 13-14 AUGUST 2015 | LE MÉRIDIEN JAKARTA Register at payments@arcmediaglobal.com! Follow @PaymentsAsia

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