Understanding Today's Unique Trends in Online Payments

The rapid growth of technology has also changed people's habits. The same thing happens in online shopping habits, from those who initially used to come directly to the store, now only need a cellphone or computer screen to buy the desired item.

In the past, people used to come to travel agents when they wanted to travel and compare prices with each agent player. Now all processes can be done with an online platform. Likewise, when you want to order a motorcycle taxi, you only need to go through the application.

According to a ValueWalk report, Indonesia has around 132 million internet users. Around 24,7 million of them are categorized as online shopper and has spent up to Rp75 trillion. It is believed that this figure only records online shopping from non-cash payment methods, not from payment methods Cash on Delivery (CoD) and other manual methods.

The increasingly attractive e-commerce industry is in line with the increasing variety of payment methods that buyers can choose from. All the conveniences provided by technological innovation make a lifestyle shift. What is this unique trend like?

To discuss this topic, #TuesdayStartup this session (23/10) presented the Head of Marketing Communication Faspay Frecy Ferry Daswaty. Here's a summary.

Online payment solutions are increasingly diverse

Frecy explained that currently the payment options for online shopping are very diverse. In addition to credit cards, debit and bank transfers, there is mobile banking, e-money & mobile payments. Technology companies also provide such as Samsung Pay, Apple Pay, and Google Pay.

Conventional companies are also not to be outdone, such as Pegadaian and Pos Indonesia, which provide payment options at each of their outlets throughout Indonesia.

But the one that currently has the greatest reverberation is digital financing presented by fintech players. Just take the solution for example payment in installments at street vendors presented Akulaku.

"This new payment method is quite unique and it is likely that in the future there will be many other unique solutions that are ready to be presented. Of course, gradually this new innovation will change people's habits," said Frecy.

This also encourages more transactions seamless pattern and journeyit's more concise with a better UI/UX user-friendly. Consumers do not need to click on multiple pages to complete their online transactions.

Payment of transactions between countries can also be easier to do, thanks to the solutions presented by PayPal. People can shop on various e-commerce platforms on a global scale, such as Amazon and Alibaba, with ease.

"If you look at three years ago, at that time online payment methods were not very popular because people still didn't really believe it. That's why CoD was more popular. The situation is different from today."

Adoption mobile first high

High amount online shopper in Indonesia, he continued, is reflected in the results of the report which states that as many as 82% of Indonesians access the internet via smartphones.

The high adoption of smartphones is inversely proportional to the level of bank account ownership. The figures are even more unequal when drawn up to the last five years. This is a homework that must be completed jointly between the government and industry players.

On the other hand, the facts show that people are highly dependent on smartphones to fulfill their daily needs.

In another report that he cites, 92,8% of Indonesians shop online via smartphones, while only 7,21% via PC.

Customize payment solutions according to the type of business

Combining the two unique facts above, it can be concluded how online stores strategize to provide the right payment method. The method depends on the type of online store service that is created.

Based on Faspay's internal report, if selling products with prices above 1 million, it's better to use a credit card installment strategy or the like rather than providing options with e-money. The same thing if an online store sells services onlinetravel agent. The installment program will certainly be more attractive.

As for service fintech repayments, for example in bill payments, Indonesians tend to prefer to choose the payment option through convenience stores. This is because the target customers of fintech players are people unbankable and do not have a bank account.

Option to pay by convenience stores will make it easier. As for purchasing game vouchers, the majority will choose to buy via e-money services. The reason is more concise and does not require identification by including an ID card. Just use a cell phone number.

"This is a fact that we take from Faspay's own data. Faspay partners with 1800 merchants with 20 categories. We took the five largest categories and that's the result. So the point is to return to the type of online service that you want to provide. Because of the preference in using each online payment option. different."

The next strategy that needs to be considered is how to choose the right marketing promotion in order to capture many transactions. From Faspay's internal data, the highest level of online shopping is on weekdays, from noon to evening.

Wednesday recorded the highest conversion rate of any other day. Precisely on weekends the conversion reaches a decrease of up to 30%.

"This is natural because on weekends, people are more focused on spending time with family and resting so they rarely use their smartphones."

From this insight, Frecy hopes that every online store can consider many sides, both in terms of providing payment methods and appropriate marketing strategies. Thus, the business will continue to grow.