Indonesia is still a country where cash is more widespread and useful to residents than any other form of payment. That explains why consumers still rely on cash even for digital purchases.
According to data from Southeast Asia-based ecommerce logistics provider aCommerce, cash on delivery (COD) was still the payment method used for nearly two-thirds (65.3%) of digital purchases in Indonesia in February 2017. Credit cards were used to complete about one-fifth (20.7%) of online purchases, while ATM or bank transfers were used for 13.9%.
Online shoppers in Indonesia don’t seem to have achieved a level of familiarity and comfort with alternatives to cash just yet. But that may soon change.
Alibaba affiliate Ant Financial has made some aggressive moves into the market. Earlier in April the company announced a partnership to launch a payments service on BlackBerry Messenger (BBM), a messaging platform that has largely been forgotten about in Western markets but remains a player in Indonesia.
A poll of mobile internet users from research firm JakPat found that 83.1% still used BBM in January 2017.