18-210815_Development of mobile wallet market in Indonesia 2006-2015

Mobile Money/Wallet Ecosystem

3rd Annual Mobile Wallet ConferenceDevelopment of mobile wallet market in Indonesia 2006-2015

Mobile Money Ecosystem

Service Providers Instruments Mobile Money

Regulators Services

1. Telco Operators

2. Bank

3. IT Company / E-Commerce Company

1. Mobile Apps

2. SMS/USSD

3. Card Based

4. Web/Desktop

Central Bank

1. Public Transportation

2. Utility Bill Payment

3. Shopping Merchant

4. Online Retail Merchant

“Mobile money ecosystem includes mobile money providers and all third party organisations that can benefit from mobile money, either by using it as a payment mechanism or by leveraging mobile money

accounts”

Adaptation of E-Money in Indonesia continues to experience a promising development from year to year, at the beginning of 2008, the number of transactions E-Money in Indonesia there were only around 2.6 million transactions, while in 2014, there were around 203.4 volumes of e-money transactions in Indonesia and reach transaction value of IDR77 billion per day.

E-Money Transaction in IndonesiaHistorical View of E-Money in Indonesia


2008

2.6 MiliionTransaction

s

2009IDR. 77 Billion

=USD. 8.1 Million

2014

203.4 Million

Transactions

2014IDR.3,320 Billion

=USD 261.4

Million

E-Money usage numbers in Indonesia(In Million Units)

Yearly Transaction Value (In Billion IDR)

2008 2009 2010 2011 2012 2013 2014 20152.6

17.4 26.5 41.1

100.6

137.9

203.4223.4

CAGR 87%

Year 2015 (Represent only from January to June)

2008 2009 2010 2011 2012 2013 2014 2015 77

519 693 981

1,972

2,907 3,320

2,275

CAGR 71%

Year 2015 (Represent only from January to June)

*1 USD = IDR 9500 in 2009 *1 USD = IDR 12,700 in

2014


GazCard

Aug’2006

Indomart Card

Nov’2008 Jan’2009

E-Toll Card

Apr’2012

E-Toll Pas

Flazz BCA

Feb’2007

Telkomsel t-cash

Jan’2007

Jun’2012 Feb’2013Apr’2012Feb’2012

Brizzi Card Jak CardMega Cash BBM Money

Mar’2013

Rekening Ponsel

Jan’2009

Dompetku

Jan’2012

XL Tunai

Smartfren Uangku

Jun’2015

History of Mobile Money in Indonesia

e-money trend in Indonesia began in 2006. Mobile Carriers and banking institutions begin to introduce e-money services in the form of a physical card

As the development of technology and the development of smartphones, almost all mobile money services is transformed into a mobile services application that can be

downloaded for free


Mobile Money ProviderMobile Money / Mobile

Payment

Jak CardBank DKI

Bank Mandiri

Indomaret Card

Gaz Card

E-Toll Card

E-Cash

Bank BCA

Flazz Card

Mega Cash

Mega Virtual

Tap Cash

Brizzi

BBM Money

Bank Permata

CIMB Niaga

Rekening Ponsel

Nobu Bank Nobu E-Money

Bank BRI

Bank BNI

Bank Mega

1

t-cash

Indosat

Dompetku

XL Axiata

XL Tunai

Smartfren

Uangku

Telkom

I-Vas

Flexi Cash

Skye Sab

Binus Easy Transaction

Skye Mobile Money

FinChannel

Mynt e-moneyArtajasa

Doku Wallet

Nusa Satu Inti Artha

Finnet Indonesia

Witami Tunai Mandiri

Witami Tunai

mVcommerce

Ponsel & Instan Pay

2

3

4

5

6

8

7

9

Bank Institution Telco Provider

1

2

3

4

5

3rd Party

1

2

3

4

5

6

(Dismissed in 2015)


Technology Transformation in Mobile money

Card Web Based, USSD, SMS

Mobile Apps


Mobile Money RegulationsMobile Money / Mobile

Payment

Registered Unregistered

Transactions Allowed1. Owner Registration2. Credit Top up3. Billing Payment (Water, Electricity, etc)4. Fund Transfer5. Transaction Payment6. Cash Withdrawal7. G2P8. Others

Maximum Balanced : IDR 5,000,000Maximum Usage Limit in One Month : IDR 20,000,000

E-Money can be categorized as registered if the identity of the owners are registered and recorded on the publisher database.

Transactions Allowed1. Credit Top up2. Billing Payment (Water, Electricity, etc)3. Transaction Payment4. Others

Maximum Balanced : IDR 1,000,000Maximum Usage Limit in One Month : IDR 20,000,000

E-Money can be categorized as unregistered if the identity of the owners are not registered and recorded on the publisher database.


Mobile Money Services

Retail Payment Public Transportation

Online Payment Food and Beverage Spot Shopping Merchant Gas Station Amusement Park

Payment

Busway Payment Commuter Line (Train) Toll Road Payment Public Parking Payment

Online Shopping E-Commerce Shopping Online Game Point

Purchase

Bill Payment Others Services TV Bill Internet Bill Tax Payment Top Up Credit Purchase

Person to Person Money Transfer (Same and Different Operator)

G2P

Mobile Money/Wallet Services


Mobile Money Function Card

Retail Payment Public Transportation Online Payment Bill Payment Other FunctionsJak Card √ √

Indomaret Card √ √ √ Gaz Card √ √ √ E-Toll Card √ √ √ Flazz Card √ √ √ Mega Cash √ √ Tap Cash √ √ Brizzi √ √

Nobu E-Money √

Web Based/SMS/USSD Retail Payment Public Transportation Online Payment Bill Payment Other Functions

Mega Virtual √ √ Rekening Ponsel √ √ √

Flexi Cash √ √mVcommerce √ √ √

XL Tunai √ √ √ √FinChannel √ √

Mynt e-money √ I-Vas √

Mobile Application Retail Payment Public Transportation Online Payment Bill Payment Other Functions

BBM Money √ √ √Binus Easy Transaction √ √ Skye Mobile Money √ √ √Smartfren Uangku √ √ √ √

Web Based/SMS/USSD & Mobile Application (Hybrid) Retail Payment Public Transportation Online Payment Bill Payment Other Functions

E-Cash √ √ √ √ T-Cash √ √ √ √

Doku Wallet √ √ √ Witami Tunai √ √

Dompetku Indosat √ √ √ √

Case Studies

Case Study 1

Bank Mandiri

Case Study 1 – Bank Mandiri

Mandiri Pre-Paid Card in Numbers

Subscribers 5.35 millionTransaction Value (2014)

IDR 1.6 Trilion

Transaction Volume (2014)

143.1 million

Total Merchant 1,000Total EDC 38,000

Mandiri Launched card-based pre-paid services in 2006, called Mandiri Gaz Card, a collaboration with PertaminaThe development was continued with segmented prepaid card i.e. e-toll and Indomaret cardIn 2014, Bank Mandiri launch e-Cash, server based e-money product that can be used through mobile apps or sms/USSID. Moreover, they differentiate the product for registered and unregistered customers

What’s next?Interoperability with other banks. It is started with state-owned banks in public transport (toll payment)Mandiri e-Cash in Numbers

Number of downloads (Jul 2015)

206,000

Transaction Value (Jul 2015)

86.8 billion

Transaction Volume (Jul 2015)

97,000

Total Merchant ~100

Case Study 2

Bank BCA

Case Study 2 – Flazz BCA

BCA Mobile Money in NumbersSubscribers 7.7 million

Transaction Value (Jan – Jun ’15)

IDR 425 billion

Transaction Volume

(Jan – Jun ’15)46 million

Total Merchant 70,000Total EDC 102,000

BCA Launched their first mobile money in 2007 in a form of pre-paid contactless card, called Flazz BCA.The first main service was for merchant payment, targeting some food and beverages, bookstore, minimarkets, etc.One of their main strategy is to develop co-branding Flazz card with several key merchants, targeting community based and young customersPublic transportation payment is considered as one of the key success factor.

In June 2015, their number of transactions increased 230% year-on-year which was mostly contributed by public transportation ticket.

What’s next?BCA is about to launch server based e-money (called Sakuku) in the next 2-3 months. Flazz as e-money platform/product framework. BCA has signed agreement with some other banks to develop co-branding Flazz card. For example Flazz OCBC NISP.

Case Study 3

Telkomsel

Case Study 3 – Telkomsel T-Cash

TSEL Mobile Money in Numbers

Active Subscribers > 15 MioTransaction Value N.A.

Transaction Volume

N.A.

Total Merchant 700Total EDC 40,000

Telkomsel became the first mobile operator in Indonesia to launch mobile money services in Indonesia in 2007. At the launch, services used were mainly P2P, bill payment, air time top up with limited merchant payment option. It reached 1,000 Indomaret stores and 100,000 subscribers in one year by 2008.Growth milestones:

In 2010: < 1 mio subscribers, 170 merchantsIn 2011: 5 mio subscribers, 350 merchants, 8,900 EDCsIn 2012: 8 mio subscribersIn 2013: 13 mio subscribersNowadays Telkomsel >15 Mio subsrcibers

T-Cash expansion program path: New cities, online merchants (online game vouchers), cash-in cash-out (merchant), cross-border remittance (Hong Kong), merchant partner expansion (rural cooperatives for electricity bill payment)

What’s Next?Telkomsel T-cash will soon launch its new NFC merchant payment in Indonesia through Telkomsel T-Cash Tap (previous pilot product: Tap-Izy) Target merchant partners: lifestyle F&B outlets (Baskin Robbin, McDonald’s, Coffee Bean, Cinema XXI), 7 Eleven)

Case Study 4 – G2P Payment

Family Hope Program/Program Keluarga Harapan (PKH) is a social protection programme that provides conditional cash assistance to very poor householdsThis program delivers benefits to 2.3 million families in IndonesiaPayments to these families are currently made through a manual process involving the Indonesian Post Office.In 2014, TNP2K did pilot project in replacing manual payment with mobile money for this payment

The pilot project was conducted in North Jakarta, Cirebon, Pasuruan, and KupangThe involved bank were Bank Mandiri and BRI. Banks were using mobile based instruments i.e. USSID and SMS based system

This particular pilot could identify the benefit and inhibitors for G2P payment through mobile money/payment.

Thank You

18-210815_Development of mobile wallet market in Indonesia 2006-2015

Economy & Finance

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