OVO Controls Electronic Money Market in Indonesia

Bank Indonesia (BI) noted that OVO controlled the electronic money market in Indonesia, namely 20% last year. This payment technology (fintech) company outperformed GoPay from Gojek, Bank Mandiri to BCA. GoPay and Bank Mandiri’s market share was 19% each, while DANA and BCA were 10%. Then BRI 6.3%, LinkAja 5.8%, ShopeePay 3.7%, BNI 1.3%, and Doku 1.2%.

In fact, banks were still leading the electronic money market in 2015. The order is Bank Mandiri, BCA, XL Axiata, BRI, and Telkomsel. Even so, if debit and credit cards are counted, BCA leads with a 23% market share. Followed by Bank Mandiri and BRI with 16% each.

This data is in line with the latest survey by the Internet Service Providers Association (APJII) which shows that OVO is slightly ahead of GoPay. As many as 6.5% of the 7,000 respondents used OVO, while GoPay was 5.9%.

OVO Head of Corporate Communication Harumi Supit said the company focuses on collaboration, such as with the government and other industries to increase usage (use-case). One form of cooperation is to become an official partner in distributing the Pre-Work Card incentives.

In addition, it supports the State Electricity Company (PLN) in distributing the disbursement of electricity bill subsidies. Also applies the standard QR code standard or QRIS. “We are also improving the quality of services and products,” said Harumi, Tuesday (10/11).

Transactions Increase during the Pandemic

During the corona pandemic, transactions for several OVO services also increased. E-commerce payments, for example, rose 110%. Then, food delivery services rose by more than 15% and seeking loan funds by nearly 50%. The number of users also grew by 276%.

Apart from BI data and APJII survey results, Ipsos’ research shows that OVO service penetration outperforms GoPay during August-October. OVO penetration is 46%, while GoPay is 35%. However, ShopeePay is leading with 48%. Meanwhile, DANA is 26% and LinkAja is 16%.

The Ipsos calculation results also show that ShopeePay loyal users are higher than other digital wallets (e-wallets), with a ShopeePay net promoter score (NPS) of 42% of 598 respondents. Followed by OVO 34% of 684 respondents.

Then GoPay 28% from 580 respondents, DANA 27% from 475, and Link Aja 19% from 295. On the other hand, Ipsos Indonesia Associate Project Director Indah Tanip said, there were quite a lot of DANA and LinkAja users who were dissatisfied with their services.

“Both must focus on dealing with users so they can divert the dissatisfied towards passive or even promoters,” he said in a virtual press conference entitled ‘Satisfaction, Loyalty and Perceptions of Digital Wallet Users in Indonesia’, last week (4/11) ).

Responding to this, LinkAja Marketing Director Edward Kilian Suwignyo said there are many easy ways to increase satisfaction, especially by launching various promotions. Meanwhile, companies are not focused on “burning money”.

“Apart from teaching inappropriate motives for behavior change from cash to non-cash, this kind of model (promotion) is only effective for a short period of time,” said Edward, last weekend (6/11). Meanwhile, DANA CEO Vincent Iswara said that he would conduct an evaluation to increase customer satisfaction.

OVO Supports National Fintech Week 2020

The company ensures that each related department can immediately handle problems that occur and provide solutions for consumer convenience. “Small approaches are taken. We believe user loyalty is maintained while strengthening the application,” said Vincent.

OVO, the leading digital payment platform, rewards and financial services in Indonesia, affirms its commitment to support the 2020 National Fintech Week. This initiative is proof of encouraging financial inclusion while contributing to the recovery of the national economy.

As a form of support for this event, OVO also held an OVO Cashback Attack promo on November 10-30 2020 involving various merchants with a total of 1,802 stores and took place in 85 cities in Indonesia.