ColumnColumn

[Indonesia] "OVO" e-money is rapidly gaining popularity / Expanding users by making it more accessible to daily life

  • Release date: Aug 05, 2019
  • 4087 Views

images

Supermarkets and department stores collaborate with "Grab", a car-delivery app, to quadruple the number of users in two years.

OVO, an e-money service provided by PT Visionet Internasional since 2016, has been working with major supermarket chain Hypermart and department store chain Matahari since the beginning, and has quadrupled its users by 2018. In 2018, it is expanding its usage scene by linking up with Tokopedia, the largest online shopping mall, and Grab, a car-delivery app. In addition to OVO CASH, which can be recharged with partner credit cards or in stores, OVO POINTS, which accumulate with each use, can be converted into 1 IDR (about 0.0076 yen) per point and used for future payments. In 2019, Tokopedia will launch "Pay later" using OVO, which is attracting attention for its ability to pay in installments without the need for a credit card.

The ability to accumulate points and use them for payment is easily accepted by people who are not familiar with electronic money.

The number of e-money users in Indonesia has been expanding due to the enhancement of car-dispatch apps and e-commerce, as well as the shift to cashless services on highways and public transportation, and the number of e-money users has rapidly increased by about 3.5 times from the end of 2017 to March 2018. On the other hand, the fact that e-money requires recharging in advance makes it difficult for middle-income and lower class people to accept it, and the belief in cash still remains strong. On the other hand, the fact that e-money requires recharging in advance makes it difficult to be accepted by the middle-income and lower class, and the belief in cash still remains strong. In this respect, OVO is easily accepted by those who have never been familiar with e-money payments, since points can be accumulated and used for payments even if the payment method is not e-money (OVO CASH). In addition, the high cash-back rate compared to other e-money, the ease of use of the application with QR code reader, and the fact that it can be used in everyday situations such as supermarkets and parking lots are all factors behind its popularity.

images

This article is co-authored by TNC Lifestyle Researcher (http://lifestyle.tenace.co.jp/) and Intage's Global Researcher.

Translated with AI Translator

  • TNCアジアトレンドラボ

    Author profile
    TNC ASIA Trend Lab

    TNC ASIA Trend Lab is an information organization run by TNC Inc. that researches and shares trends in Asia. It supports corporate marketing activities by finding insights from trends rooted in the lifestyles and habits of local consumers. http://lifestyle.tenace.co.jp/

  • Intage Inc

    Editor profile
    Intage Inc.

    ＊＊＊

Reproducing and quotation
  • The copyright of this report/column is held by Intage Inc. or the company to which the author belongs. Please confirm the following prohibitions and cautions, and specify the source when reproducing or quoting.
    Example:
    "Source: Intage's Research Report "(Report title) (issued on DD/MM/YYYY)"
    "Source: Global Market Surfer, article published on DD/MM/YYYY"
  • Prohibiton:
    • Modification of part or all of the contents
    • Sale or publication of part or all of the contents
    • Use that is offensive to public order and morals or that leads to illegal activities
    • Reprpducing or quotation for the purpose of advertising or sales promotion of companies, products, or services.
  • Other cautions:
    • We are not responsible for any trouble, loss or damage caused by the use of this report.
    • These terms of use do not restrict the use of quotations, etc., which are permitted under the Copyright Act.
  • If you have any questions about reprinting or quotation, please contact us from here