Indonesia has one of the biggest e-commerce markets in the whole of South Asia. Mainly due to the growing middle class that is depending on the internet and smartphones to shop online. With an increase in disposable income, more and more online transactions are taking place on internet retail shops. This is one of the main reasons why online businesses are opting for an e-commerce payment gateway to meet the growing demand from customers. Here are some of the signs that predict the trend of growth in the e-commerce domain is not going to stop.
Increases in Investment into E-commerce Development
The Indonesian government is currently trying to develop an e-commerce development plan for helping more e-commerce businesses to thrive. Their plan is to promote entrepreneurial spirit within Indonesia so that they can develop the digital economy of the country. Because of the backing of the Government, there are many major investors who are investing their money into Indonesian E-commerce platforms. There is more confidence among investors to further invest in Indonesian companies which also seems to increase online transactions.
Boost in The Use of Digital Payment Methods
Due to the increase in investment in Indonesian online businesses, the development of an Indonesian online payment gateway helps attract new customers to online platforms. E-wallets are dominating the digital payment space. These digital wallets help customers to make payments on online stores easily. Another great player in the digital payment space is Buy Now Pay Later (BNPL). This payment method allows shoppers to make payments in instalments for goods purchased online. Since many Indonesians have access to mobile phones, online purchases using these payment methods become hassle-free.
Growing Middle-Class Population
Indonesia has a very large population and most of them are middle-class in the society. The middle-class is the single driving factor for the growth of the e-commerce industry. The emerging middle-class is estimated to increase in the coming years, meaning that the e-commerce industry is predicted to see sustainable growth as well. The middle-class in Indonesia prefer to use an e-commerce payment gateway to shop online. Another factor that we have to take into account is the rising internet and smartphone penetration in Indonesia. With a young and tech-savvy population, the new generation is much more comfortable with a cashless experience when shopping online.
The Effect of The Pandemic
The COVID-19 pandemic has reinforced the importance of e-commerce businesses in Indonesia. There has been an increase in sales across numerous online businesses. This pandemic has just accelerated the adoption of the internet and the usage of an Indonesian online payment gateway to make transactions possible. The ease of making purchases from the comfort of your own homes is attracting more customers. With the pandemic still raging in many parts of the world, the convenience of online shopping is becoming more attractive to Indonesian customers. This is just another sign that e-commerce businesses are the future of the financial landscape in Indonesia.< Next post - Why Should You Add Online Payment Gateway to Your Business Strategy? Prev post - Is An Online Payment Gateway the Right Choice for Your Business? >