Payment cards in Indonesia have grown fourfold in 10 years

Filed under: International News |


The penetration of payment cards in Indonesia has grown by over 330 percent in 10 years, from around 19 payment cards per 100 adults in 2005 to 82 payment cards per 100 adults in 2014.

Lafferty Group estimates that penetration will reach 99 cards per 100 adults in 2015, with significant growth expected in debit and e-money card numbers. However, payment card penetration is mainly concentrated in large urban centres rather than among the widespread rural population.

With a large population, a fast-growing economy and an increasing demand for financial services, Indonesia represents an attractive consumer credit market.

“Indonesia is largely a cash dominated society,” observed Lafferty Group’s head of research, Phathisani Khumalo. “However, the payment cards market is developing significantly, with the total billed volume made on payment cards reaching $188.8 billion in 2014, an increase of about 104 percent when compared to 2010.”

Despite rapid growth in the number of POS terminals over recent years, Indonesia still has an inadequate card acceptance infrastructure, with around 4.5 POS terminals per 1,000 people at the end of 2014.

The level of indebtedness in Indonesia is low even by regional standards. Total consumer debt as a proportion of personal disposable income (PDI) was 17.5 percent in 2014, compared to an estimated 140 percent in Malaysia and 130 percent in Singapore.

The Lafferty Global Research report for Indonesia provides a comprehensive overview of the cards, payments and consumer banking market in the country together with invaluable market and competitor intelligence on payments cards, e–money, acquiring/processing, retail banking and consumer finance. The report is now available at


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