1. 1 SEPTEMBER 2013ADVANCING INSIGHTS ADVANCING COMMERCE
Cashless payments in Indonesia account for only 31% of the total value of consumer payments. This is shown by
the Share Indicator. The Share score puts Indonesia in a category of countries we describe as “Inception,” alongside places
like Nigeria, Russia and Colombia. These countries have only just begun to move away from cash. Only 20% of Indonesians
over the age of 15 have bank accounts, and only 11% have debit cards, however this does not necessarily mean that a move
away from cash is impossible. Other markets show that new technologies such as mobile payments can act as substitutes
for bank accounts and payment cards, and offer shortcuts on the cashless journey.
The Trajectory Score of 23 for Indonesia indicates that some progress away from cash is happening. Small
reductions in cash share of consumer payment value occurred between 2006 and 2011 but this does not appear to have
favored any one payment instrument, as small share growth was seen in cheques, credit cards, debit cards and direct debit.
Indonesia’s Readiness Indicator score was 24, slightly better than Nigeria and Egypt, but worse than Russia and India.
Readiness is a composite of macro-economic measures found to be correlated to consumer cash usage. Improvements
to Readiness will be a matter of prioritization, as challenges include poor availability and affordability of financial services,
infrastructure challenges, poor ease of doing business scores and lack of merchant scale.
% of Population With a
Bank Account: 20%
Debit Card: 11%
Consumer Payments:
2011: $811 bn (USD)
2006: $380 bn (USD)
The Cashless Journey Study measures nations’ progress in evolving consumer payments from cash to cashless. The study
evaluates 33 countries from five regions, including both developed and developing nations.
The study measures three indicators of progress along the cashless journey:
1. Share: a calculation of the share of non-cash consumer payments of the total value of consumer payments
2. Trajectory: a measure of the shift in cash share of consumer payments’ value between 2006 and 2011
3. Readiness: a measure of the potential for conversion of cash payments to electronic payments.
The Cashless Journey findings for Indonesia are:
MasterCard Advisors’ Cashless Journey
Share
Indonesia Indonesia Indonesia
Trajectory Readiness
Highest
0
10
20
30
40
50
60
70
80
90
100
Mean Lowest
31
93
52
7
Highest Mean Lowest
23
100
24
10
Highest Mean Lowest
24
91
57
19
CASHLESS PAYMENTS IN INDONESIA ACCOUNT FOR 31%
OF THE VALUE OF ALL CONSUMER PAYMENTS.31%
Spotlight on...
INDONESIA
GDP:
2011: $846 bn (USD)
2006: $365 bn (USD)
Cashless Journey Spotlight
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DRIVING GROWTH &
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13-14 AUGUST 2015
JAKARTA
CONFERENCE
www.arcmediaglobal.com/payments
Online Payment Gateway
Partner
Marketing Partner
In 2015, the pressure is on to drive growth and
profitability. There’s a lot of distracting trends.
So it’s critical to filter through and focus on
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Growing your payments business and making
it profitable are the main objectives during the
5th annual Payments, Settlements and
Remittances Asia on 13-14 August 2015 in
Jakarta. Register today!
Co-Chaired by:
Dr Moekti Prasetiani
Soejachmoen
Head of Mandiri Institute
Bank Mandiri
FINTECH
PAYMENTS
for
E-commerce Case Study
Michael Gethen
CEO
Sprooki
International Bank Innovation
Caroline Lacocque
SVP, Global Payments
HSBC
Online Payment Gateway
John Tan
Business Dev Manager
Telr
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Organised by Promoted by
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Gerald Ferguson
General Manager for Asia
RFi Group
Co-Chaired by:
Carl Clump
Chairman
Stanfield Funds
Management
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2015 ASIAN FINANCIAL
STABILITY LEADER OF
THE YEAR
The Honorable Agus
Martowardojo, Governor,
Bank Indonesia
2015 ASIAN BANKING
LEADERSHIP AWARD
Mr Budi Sadikin, CEO,
Bank Mandiri
2015 ASIAN MARKET
MAKER OF THE YEAR
AWARD
John Riady, Director,
Lippo Group
CBFS presents
4. Dear Colleagues,
Driving profitability and growth in the midst of big trends in technology, risk of tighter
liquidity, currency volatility and new regulations is going to be the banking sector’s
great challenge in 2015.
For some, upgrading their FinTech for payments seems to be the convenient
solution and everybody seems to put a check on the following:
• Interest in user and customer experience
• Security breaches
• Mobile, mobile, mobile
• Regulatory compliance demands/expense
• Handwringing about the branch network/transformation, and
• Adopting big data projects with expected ROI
However, at the back of your mind, you ask: Is this really what will maximise the
value of my networks?
It’s not about blindly following the trends—big data, e-commerce, m-commerce, so
many—it’s about building what works with the networks you already have,
technologies that can help you leapfrog and the actual context of use in your
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In this rapidly changing banking business and regulatory environment, we have
designed Payments, Settlements and Remittances Asia 2015 to provide you a
focused FinTech for payments platform, help you set up a balanced payments
channel infrastructure and facilitate growth and profitability.
Thank you and I hope to see you once again in Jakarta for a profitable meeting.
Sincerely yours,
Frank Mercado
Director
Center for Banking and Financial Services
DRIVING GROWTH &
PROFITABILITY IN 2015
Telr is more than a payment gateway. We provide services critical to the growth of
businesses of online merchants in emerging markets.
Telr provides the best of breed 100% in-house payment gateway solution to online
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Visit https://telr.com/english/company.php to enquire.
Frank Mercado
The Payments & Cards Network is dedicated to innovating Executive Search, Recruitment
& RPO services by fostering personal relationships with clients, knowing where the very
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With a global database of over 40,000 professionals, you have the largest Payments &
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Visit http://paymentsandcardsnetwork.com/ to enquire.
ONLINE PAYMENT GATEWAY PARTNER MARKETING PARTNER
PSRA is the boutique conference for FinTech
professionals in Asia. The insights are globally
current with local relevance, the agenda design
is upscale and the discussions are action-
focused, genuine and intimate,
Mr. Helal Ahmed Chowdhury, CEO, Pubali Bank
Register 3 delegates and gain a
speaking session on a first come,
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13-14 AUGUST 2015 | JAKARTA
2
WHY ATTEND
PSRA 2015?
Grow payments income
1. Drive growth and profitability by growing
your income from payments amidst tight
liquidity and volatile Rupiah and be
introduced to the international banking
community
New currency regulation
2. Understand the new regulations in
currency requirements and e-commerce
and how you can manage financial risks
from e-business
Innovative competition
3. Understand why customers are choosing
alternative payments solutions and how
you can quickly adapt to your customers’
changing requirements