Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(12)

Spread of mobility service and Indonesian cashless society

In a country where less than 10% of the population holds credit cards, implementation of e-payment system on mobile devices served as a game changer for the leapfrog of the mobility market. 

As users can make payments within their balance in the mobile wallet, overall access to mobility services was considerably upgraded. In other words, mobility services in Indonesia became more and more prevalent with no concern for possession of cash or credit cards.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(11)

Spread of mobility service and Indonesian cashless society

Huge success of two mobility startups in Indonesia can be partly attributed to the introduction of e-payment methods to their applications. For example, after purchasing a few electronic wallet-related startups, Go-Jek added Go-Pay, an e-payment function to its application in April, 2016. 

                                

In contrast, Grab announced official business partnership with OVO, an electronic payment platform backed by Lippo Group and have it transplanted to mobile application in December, 2016.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(10)

Spread of mobility service and Indonesian cashless society

Beginning from the desperate idea of improving chronic traffic congestions in urban districts, both Go-Jek and Grab have risen to their fame as supper applications inevitable for daily lives of the Indonesian people, young generation in particular.

 

                     

As snowballing amount of investment continues to rush in, anticipation has been getting bigger that the local mobility market will fulfill its growth potentials in a maximum level.

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(9)

Spread of mobility service and Indonesian cashless society

In tandem with the e-commerce, fintech and online travel areas, mobility service has been often acclaimed as the leading trailblazer of the Indonesian digital economy. 

It is due to the rapid development of the mobility industry mainly triggered by ever-intensifying rivalry between Go-Jek and Grab, two and only decacorns in Southeast Asia. 

Expansion of Mobility Services and Its Impact on the Development of a Cashless Society in Indonesia(8)

Global eyes on startup fever in Indonesia

In this regard, it is no wonder that Indonesia has been through hottest startup craze in Southeast Asia over the last decade. Starting from the e-commerce field followed by sectors like the co-working space, the mobility and the fintech  services, young and ambitious startups have been playing crucial roles in taking initiatives to bring digital technology into designing customized solutions in a local context. 

As Bari Arijono  stressed throughout his book, ‘Indonesia Digital Nation’, digital transformation has been widely undergoing all over major industries in Indonesia.