Contactless payments are gaining momentum in Indonesia – Visa Study

Jakarta, April 21, 2022 – Visa, the world’s leader in digital payments, today revealed contactless payments are growing in popularity in Indonesia with one in three consumers using contactless cards and 70 percent using them more frequently since the start of the pandemic, according to Visa’s Consumer Payment Attitudes Study[1].

The annual study, which spotlights the rise of digitally-engaged consumers in Southeast Asia, showed three out of four consumers are interested in making contactless card payments, dominated by affluent (80%) and Gen Y or millennial (78%) segments. The top reasons for preferring contactless payments were because they are hassle-free, easy to use, innovative, and hygienic, eliminating the need to carry cash.

Riko Abdurrahman, President Director of PT Visa Worldwide Indonesia, said, “The pandemic has driven a heightened awareness of health and safety amongst consumers, which has made them find new ways to ensure a “low-touch” experience for their out-of-home activities. Tap to pay provides not only a safe, secure, seamless, and innovative way to pay and be paid, but it is foundational to the emerging contactless lifestyle that will last post the pandemic.”

The study also showed how contactless usage is becoming more widespread and preferred in categories like supermarket (17%), retail shopping (16%), overseas travel (15%), convenience store purchases (15%), food and dining (14%), and entertainment (14%).

To boost contactless usage in these categories, Visa has embarked on a consumer campaign in the next few months collaborating with banks and merchants to provide attractive offers at retailers, including Foodmart, Hero, Hyfresh, Hypermart, Maxx Coffee, Primo, Tous Les Jours, and many others. Visa is also embarking on a “QR hunt” game for contactless cards users who shop at Hypermart Lippo Mall Kemang, until the end of March 2022.

Contactless payments are the preferred way to pay in many countries around the world. There are more than 20 countries where contactless payments make up more than 90 percent of all Visa face-to-face transactions. Excluding the United States, nearly 70 percent of all Visa face-to-face transactions globally are contactless[2].

In Indonesia, Visa contactless credit card payments can be made at the speed of a single tap without having to input a PIN for transactions up to IDR 1 million.

“Visa continues to be at full-speed in collaborating with our banking partners and merchants to expand contactless card awareness, acceptance, and usage across the country,” added Riko.