Chart of the Week: Indonesian debit card payments to hit $32.3b in 2023

It has surpassed credit card payments in 2019.

Indonesians are increasingly preferring debit cards over credit cards when making payments, according to a GlobalData report, and is expected to hit $32.3b (IDR440.8t) versus credit cards at $26.8b (IDR365.7t).

In 2019, debit card payments totalled an estimate of $23.3b (IDR318.5t), eclipsing credit cards which amounted to an estimate of $22.7b (IDR309.5), with the trend likely to continue over the next four years.

Banking and payments lead analyst Ravi Sharma attributed the shift to government initiatives such as cash transaction limits, branchless banking, electronic payment awareness campaigns and giving licences to banks to operate in rural areas.

To further promote card payments, the Indonesian central bank mandated that all ATM and debit cards must be equipped with the EMV standard and a six-digit PIN by 31 December 2021.