Indonesia Payments Guide: The Leading Payment Gateways for Businesses

July 2, 2020

Choosing the wrong payment gateway solution can prove to be a costly mistake for online business, e-commerce merchants or digital services providers. You may have an attractive product offering or service, but if your payment gateway creates a frustrating experience for your customers, this will result in a large number of abandoned carts and adversely impact your conversion rates. 

  • Overview of Indonesia’s payments landscape
  • Leading payment gateways for businesses
  • The importance of diversifying into mobile payment methods in Indonesia

Insights into Indonesia’s payments landscape

The payments landscape in Indonesia is fragmented and complex. This is in part due to the country’s large population and vast geographical spread, which presents significant challenges to developing an integrated digital payments infrastructure nationwide. To ameliorate the problem, Bank Indonesia established the National Payment Gateway, with the goal of improving interoperability through integrating all payment channels in the country.

Online payment methods in the country are wide-ranging, and most payment gateways support diverse payment options—from peer-to-peer lending and QR code payments, to e-wallets and physical cash payments made at retail convenience stores. Statista reports that the most popular payment methods in 2019 were bank transfer payments, e-wallets and credit cards. 

While cash on delivery has traditionally been a popular payment method in Indonesia, the country is moving towards a cashless future. According to J.P. Morgan, digital wallets are the fastest-growing online payment method. It is currently used for one in five online shopping transactions in Indonesia, and is growing at a compound annual growth rate of 47 percent to 2021—at which point it will overtake bank transfers to become the second-most popular online payment method in the country. Popular e-wallets used locally include PayPal, as well as domestic brands like GoPay, Ovo, DANA and LinkAja.

The rising importance of mobile

Indonesians are primarily accessing the internet through mobile devices. Statista reports more than half of all smartphone users in Indonesia purchase goods and services online. And according to DataReporal, the number of mobile connections in Indonesia increased by 15 million (+4.6%) between January 2019 and January 2020. Further growth is expected; a report by Mobile Marketing Association (MMA) Indonesia forecasts the number of smartphone users to grow to 410 million by 2025. 

The growth in smartphone penetration has contributed to the rising popularity of mobile payments. Data from ResearchAndMarkets indicates that the transaction value for Indonesia’s mobile payments segment between January to September 2019 was more than double the value recorded in 2018. 

These figures point towards the rising importance of mobile. This is an important trend that online businesses, e-commerce merchants and digital services providers need to keep in mind when designing their payments strategy. To meet the growing consumer demand for mobile payments, businesses need to adopt alternative payment methods that are secure and convenient. 

Leading payment gateways in Indonesia


Founded in 2007, DOKU is widely recognised as the pioneer in online payment services in Indonesia. The company has launched a variety of financial products and services, including the DOKU e-wallet and money transfer services. Payment methods supported by DOKU include credit and debit cards, e-wallets, bank transfer payments and physical cash payments. 

DOKU supports multiple currencies, as well as popular e-commerce platforms such as Shopify, Magneto, OpenCart, WooCommerce, PrestaShop, Ubercart and Joomla. 


Midtrans provides financial services ranging from payments, to risk management, disbursement and chat commerce.

The payment gateway supports a range of payment methods, including credit and debit cards, bank transfer payments, cardless credit, direct debit (CIMB Clicks, Mandiri Clickpay, BCA KlikPay), e-wallets (GoPay, T-Cash) and physical cash payments (Indomaret, Alfamart). It offers multi-currency support, and supports over 1,700 merchants in Indonesia, including Blibli, Tokopedia, Matahari Mall and Garuda Indonesia. 


iPayMu enables consumers to make payments using a variety of methods, including credit and debit cards, e-wallets, cash on delivery, bank transfer payments, QR code payment and escrow. The payment gateway offers easy integration through the plug-and-play method or iPayMu’s open API, and offers multi-currency support.


Xendit is a fintech company. Established in 2014, the organisation has launched a range of services—from payment processing, to disbursement and fraud detection. The payment gateway accepts popular local payment methods, including domestic and local cards payment, bank transfer payments, QR code payment, e-wallets (LinkAja, Ovo, DANA), cardless credit (Kredivo) and physical cash payments (Alfamart, Indomaret, Dan+Dan). 

Xendit supports merchants and businesses in the e-commerce, marketplace, gaming, insurance and travel sectors. Examples include Xendit include Lazada, Travelio, Traveloka and Allianz. 


Established in 2009, Faspay is a subsidiary of information technology company Astel Group. The payment gateway accepts payment methods such as credit and debit cards, bank transfer payments and e-wallets. Faspay’s payment gateway solution supports e-commerce merchants like KlikIndomaret and Namir Beauty, and is also used by organisations across the hospitality, education and gaming sectors.

Prismalink International

Fintech company Prismalink International’s product offerings include a payment gateway service, billing solution and white-label app service. The company offers competitive pricing and seamless integration. Accepted payment methods include credit and debit cards, direct debit, bank transfer payments, QR code payment and physical cash payments. 


Espay supports a broad range of payment methods, including credit and debit cards, direct debit, bank transfer payments, e-wallets (Ovo), physical cash payments (Alfamart, Alfa Express, Dan+Dan, Lawson), micro loans (BTPN) and peer-to-peer (P2P) lending (Finmas, Akseleran). 

Espay provides plugins for businesses using popular e-commerce platforms like Magneto, PrestaShop, WHMCS and Zen Cart, as well as a single API for other platforms, making integration convenient. 


FinPay was launched in 2012 by PT. Finnet Indonesia, a subsidiary of leading telecommunications services company Telkomsel Indonesia. In addition to its payment gateway service, FinPay also offers other financial products, including an e-wallet service and billing solution. The company accepts payment methods such as credit cards, direct debit, bank transfer payments and e-wallets (Finpay Money, LinkAja, Ovo, Gopay).


Headquartered in Malaysia, iPay88 has established a regional presence in various countries across Southeast Asia, and has offices in Indonesia, Singapore, Thailand and Philippines. The company’s various product offerings caters to different segments of the market, including individuals, SMEs and corporations. 

iPay88 provides multi-currency support, and accepts payment methods such as debit and credit cards, e-wallets, direct debit, internet banking and QR code payment. iPay88 supports e-commerce platforms such as PrestaShop, OpenCart, WordPress, WHMCS, Magneto, WooCommerce and more. 

Carrier billing as an add-on to payment gateways

Direct carrier billing is an alternative payment method that enables users to make purchases by charging payments to their monthly mobile bill.

It has garnered widespread adoption in markets globally, due to the vast reach, accessibility and ease-of-use it offers. The payment method has proven to be a boon to businesses, driving purchase conversion rates that are up to five times higher compared to credit cards.

According to Juniper Research, consumer spend for digital content worldwide via carrier billing is expected to rise from US$28 billion in 2019 to nearly $90 billion by 2024. This is indicative of the significant revenue opportunity for businesses in Indonesia, as the country’s rising mobile penetration and growing mobile data consumption makes it a strong market for carrier billing. To leverage the opportunity, diversifying into mobile payment methods needs to be a top-of-mind priority for online business, e-commerce merchants and digital services providers.

Related Posts