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Business owners looking to engage with new buyers in Indonesia may feel overwhelmed by the country's complex financial ecosystem. As of May 2023, 48% of the Indonesian population still doesn't own a bank account, so it can be challenging to receive payment for goods and services.
E-wallets like Gopay, OVO, and DANA have emerged to bridge finance gaps in Indonesia. People can send and receive money simply by downloading an e-wallet mobile app and registering an account with their name and phone number. One popular e-wallet is DANA, which has successfully maintained a presence since 2018, the beginning of Indonesia's e-wallet boom.
From 2023 to 2024, DANA recorded yearly user growth of over 20% and reached a customer base of approximately 170 million people. Its longevity and varied products for consumers and businesses make it a suitable payment gateway for merchants that are looking to expand to the Indonesian market — be it through e-commerce, digital or online-to-offline channels.
For businesses not familiar with the DANA e-wallet, here's what you need to know:
Why DANA is popular among Indonesians
DANA is an all-in-one financial services provider that facilitates personal and business payments. It operates in Indonesia and primarily caters to those living in the country.
Easier than opening a bank account
Signing up for a personal DANA account is often much easier than opening a traditional bank account. It can be done from a mobile phone in seconds. Therefore, user penetration of DANA is higher in remote areas. This is useful for businesses that want to sell products around the country or in smaller towns. Customers may not be able to pay with a bank account, but they could pay with a DANA account.
Everyday use for bills, ATM, convenience stores and more
DANA users with a personal account can pay mobile phone, healthcare, internet and cable TV bills, water and electricity bills, and even Spotify memberships or buy movie tickets through the app. They can also withdraw cash from local Bank Central Asia (BCA) ATMs and other various approved locations/stores, such as Alfamart, Lawson, Dan+Dan.
To upgrade a personal DANA account and increase the wallet balance from Rp. 2,000.000 (US$120) to Rp. 20,000,000 (US$1,200), users need to upload a photo of their national ID (Kartu Tanda Penduduk, or KTP) for verification. Foreigners who do not have a national ID card cannot upgrade their individual account.
DANA Bisnis: Simplifying payments for businesses
Aside from personal accounts, users can open a DANA Bisnis account to receive payments for their business. DANA Bisnis accounts allow you to accept QR payments from any other Indonesian bank or financial service. Your customers won't need a DANA account to make payments to your DANA business account.
Why should I use DANA for my business?
Indonesia's mosaicked payments landscape is linked by Quick Response Code Indonesian Standard (QRIS), a cross-border cashless payment method that uses QR codes. Every financial account is assigned a unique QR code, and the QRIS protocol enables users of different banks and e-wallets to instantly make and receive payments to one another. The QRIS function has connected around 31 million users and 25 million merchants so far.
Like many e-wallets, DANA assigns users a QR code that can be used to make and receive payments. One thing to note: though all wallet companies have to register to be licensed, not all of them are fully registered and licensed to operate in Indonesia like DANA. There are several risks involved by using a provider that is not fully registered.
Under Bank Indonesia Regulation no. 6/20/PBI/2018, digital applications that wish to function as e-wallets need to have the correct license: Indonesia's Financial Service Authority is diligent about shutting down unlicensed services. For example, Wise suspended e-wallet services in Indonesia in 2023because it is only licensed to facilitate remittances. Businesses that use payment platforms that lack the correct licenses may find their accounts locked or lost without notice.
As DANA holds licenses to provide electronic money, digital wallet, remittance, and digital financial liquidity services, it is an ideal solution for businesses who want to be sure that their funds are secure and readily available.
How does a DANA Bisnis account work?
A DANA Bisnis account works by assigning a business their very own QR code, account number, and account address (an alphanumeric tag like a username) to receive and send payments. The DANA Bisnis account functions like an e-wallet.
Enable easy payments, including QR and recurring payments
Customers can scan your merchant QR code to make a payment. They can also send funds from any bank or e-wallet to your DANA Bisnis account number. With a DANA Bisnis account, you will also be able to scan a buyer's personal QR code to request a specific balance.
Unlike other payment gateways, DANA can also be used for subscription (recurring) payments. After receiving permission from the customer, DANA will auto-debit the users' DANA balance each month.
Your business may not be able to physically show their QRIS to customers who want to scan and pay. A DANA Bisnis account can generate payment links, allowing customers to make payments anytime and anywhere through a 'click link to pay' method. For the above use cases (click link to pay + subscription payments), there is a fee of 1.5% of the transaction amount (excluding taxes).
For QRIS payments, there is a fee of 0.7% of the transaction amount (excluding tax and service charges). Businesses can set up manual or automatic payouts to a local Indonesian bank account by uploading their individual or merchant tax identification number.
How to open a DANA Bisnis account
To open a DANA Bisnis account, a business needs to register their account via the DANA dashboard. Unlike the individual user account, both Indonesians and foreigners can create a business account. However, your business must have a valid Indonesian business license (obtainable at the local provincial or district office where the business is located).
If you're the business owner, simply use your name, email, phone number, and then set a password of your choice. Once you verify your email and log in to your account, you can begin the process of creating the account.
You will be asked to upload an ID (passport for foreigners, KTP for Indonesians), an Indonesian business license (Surat Izin Usaha Perorangan (SIUP), and a tax identification number (individual or business). Finally, you need to share payout/settlement details. DANA Bisnis facilitates payouts to Indonesian bank accounts.
Speak to Antom's payment experts to get support with DANA wallet
DANA is a convenient payment gateway for brands looking to do business in Indonesia. Once you successfully open a DANA business account, you can successfully begin receiving payments from Indonesian customers.
However, you may have questions about the signup process. The documents and steps can quickly become confusing, especially for those who cannot speak Indonesian. It's why we recommend connecting with the Antom payments team - our local and regional payments experts can quickly get your businesses ready to accept e-wallets, and your customers' preferred payment methods, to achieve the best business coverage in Asia and beyond.
