Xendit Processes Transactions of Over 171 Trillion Rupiah, The Biggest Growth of Digital Products

Startups payment gateway Xendit revealed that throughout this year (30 November 2020-30 November 2021) it has processed transaction volume values ​​(TPV) of more than $12 billion (more than 171 trillion Rupiah) with a total transaction of more than 150 million transactions per year, both in Indonesia and the Philippines. . This figure grew by 250% on a YOY basis and 12% on a MOM basis.

From the company's internal data, disclosed at this time Xendit have more than 3 thousand merchant active, consisting of 90% MSMEs and 10% corporations. The largest transaction growth came from three industries, namely digital products, which rose 400%, covering services EdTech, SaaS, healthtech, and others; the service sector grew 300%, covering schools, logistics, wedding, and others; and, financial services increased 150%, covering for mobile devices to report the accounting, investment, insurance, and others.

“The interesting thing about the service sector is that wedding because during the pandemic a lot event organizer which provides QRIS to give red packets for the bride and groom personally online” said SME Sales Lead Xendit Patricia Muljadi in a virtual press conference, Tuesday (14/12).

Xendit's Achievements

It was further explained that the most widely used payment method in Indonesia is e-wallet (43%), virtual accounts (42%), QR Codes (7%), retail outlets (6%), and credit cards occupy the bottom position.

When examined more deeply, almost half online seller Xendit already accepts payments via e-wallet. Therefore, the use of e-wallet grew significantly from year to year, especially since the pandemic, with total growth reaching 300% from the beginning of this year.

“Number of users e-wallet jalso increased 2,4 times compared to the same period last year. By November 2021, almost half of Xendit merchants already have a channel e-wallet specifically to receive buyer payments.”

Next, transfer virtual accounts remains the top choice for consumers in Indonesia with a twofold increase. As for retail outlets being the second largest choice shows that the payment over the counter still relevant in Indonesia, especially in tier two and three cities.

However, when compared to the previous year, both credit cards and retail outlets showed a significant decline. For retail outlets for example, previously the portion was 12%.

Next, payments via QR Code increased up to seven times on a YOY basis. This acceleration is driven by government regulations that stipulate QRIS, so that all digital payments can be facilitated with only the same code. Last November, Xendit noted that 1 in 5 merchant have used a QR code to receive payments from buyers.

Finally, the average transaction value for each payment method, virtual accounts being the highest compared to other payment methods. Temporary, e-wallet be the lowest. Patricia said, based on their internal data, the average transaction value for each payment method varies greatly - with virtual accounts occupies the highest number (an average of Rp. 2,3 million) and the smallest e-wallet (an average of Rp. 70 thousand).

According to him, this indicates that e-wallet widely used for small-value payments, similar to the QR Code which records an average transaction nominal of IDR 250 thousand. "Meanwhile, for large nominal purchases, Indonesian buyers rely more on virtual accounts, retail outlets (an average of IDR 1,2 million) and credit cards (an average of IDR 800 thousand)."

Other achievements were also conveyed by Xendit, namely Xendit Business App which was launched last month. It is said that this application has had more than 250 new users. They come mostly from the retail industry, digital products, and services. The payment methods they provide are e-wallet (62,2%), virtual accounts (26,8%), and credit cards (11%).

For the record, the Xendit Bisnis application allows business people who mostly use smartphones to operate their business, to manage and receive online payments from buyers, as well as Order Management which allows businesses to process all transactions automatically, from entering orders from buyers, arranging deliveries, to record all purchases.

In this way, business operations online can run smoothly and efficiently in terms of time saving. Early next year, Xendit plans to add features to this application, including integrating the Xendit Online Store with applications, managing inventory, checking postage, and ordering logistics services.

"We are very product-centric. In the future we will prepare more and improve our solution from the product side, so that the product can be simpler. This is a strategy that we will continue to adhere to,” added Xendit Nor Meydia, Head of Business Development.

Although not detailed in more detail, the company will develop its products based on three pillars, namely security, MSME-centric products, and venture capital products. For the last pillar, Xendit plans to provide working capital features for entrepreneurs and corporate credit cards.