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E-wallets require novel use cases as QRIS muscles in: Analysts
Analysts say the rivalry between e-wallets and banking apps is not a zero-sum game, as each could have their own market.
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A merchant displays a QRIS code for a wide range of cashless payments on April 20, 2022, in Jakarta. (Shutterstock.com/wisely)
B
ank Indonesia’s (BI) Quick Response Indonesia Standard (QRIS) has gained significant traction since its launch in 2019 as people continue to switch from cash to mobile payments, altering the competition landscape and forcing e-wallets to reassess their role in the industry.
While many consumers welcome the central bank’s initiative for doing away with a confusing array of payment options, it raises questions about the business models of e-wallets like GoPay and OVO initially built around provider-specific apps and QR codes.
The central bank standard gives commercial banks easier access to the mobile payment market, in which e-wallet firms had carved out exclusive market shares for themselves before QRIS levelled the playing field with its open-for-all standard.
Analysts contacted by The Jakarta Post said the rivalry between e-wallet players and banking apps was not a zero-sum game, as there is a specific market for both. However, they suggested the former build additional use cases on top of pure payment capabilities to stay relevant.
BI data shows that total transaction value of electronic money, which includes e-wallet players like GoPay and OVO, reached Rp 189 trillion (US$12.1 billion) between April and August of this year, which is up 12.6 percent from the same period last year.
The pace of growth is similar to that of digital banking apps, which grew around 12.5 percent year-on-year, despite having a far higher transaction value of almost Rp 24 quadrillion.
Meanwhile, the use of QRIS doubled during the same period, reaching Rp 86 trillion in total transaction value. By the end of August, the QR standard had been used by 40 million people and 28.4 million merchants, most of them micro, small and medium enterprises (MSMEs).
