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There's a growing appetite for cashless payments in Indonesia — and e-wallets are rising to the occasion.
In Indonesia, e-wallets remain the most popular payment method among consumers, with a 40% market share. In 2022 alone, the country had over 107 million e-wallet users. And with its population of over 280 million people, Indonesia presents a massive opportunity for the growth of e-wallets.
For one, almost half of Indonesia's adult population (49%) remains unbanked. With e-wallets, they can easily access essential financial services without setting up a bank account. And with the growing accessibility of mobile internet across the archipelago, Indonesia's young population also boosts the use of e-wallets and supports its future growth.
Businesses looking to expand in Indonesia must understand OVO, one of the country's most popular e-wallets. Integrating the OVO e-wallet into your business gives you access to an extensive customer base of over 110 million users across 300 Indonesian cities.
This guide will walk you through everything you need to know about the OVO e-wallet, from its operation to its benefits and usage.
What is OVO?
Established in 2017 with an e-money licence from Bank Indonesia, OVO is a digital payment service from Jakarta-based PT Visionet International. In 2019, OVO not only became Indonesia's top digital payment service, but it also became the country's first fintech unicorn.
How did OVO become such a trusted name in digital payments?
For one, it offers users a fast, secure, and convenient way to pay for everything — from online shopping and in-store transactions to utility bills. Since then, OVO has racked up over 110 million users across the archipelago, making it an indispensable tool for merchants looking to thrive in Indonesia's rapidly evolving digital economy.
In 2021, Grab took a 90% stake in the company, making the shared, stored-value e-wallet accessible via the Grab and OVO apps. With its versatility, integration capabilities, and support from major fintech players such as Grab, OVO is a must-have for merchants looking to meet local preferences and enhance customer satisfaction.
How does the OVO e-wallet work?
The OVO e-wallet is designed for convenience and is relatively easy to use:
Loading funds. Users can top up their OVO e-wallet via bank transfers, credit or debit cards, or partner merchants that offer in-store top-up methods.
Making payments. Users can pay for goods and services by scanning QR codes at physical stores or choosing the OVO e-wallet as their payment method online. Merchants display their QR codes at the register and train their staff to assist customers with OVO payments.
Earning rewards. OVO's loyalty programme offers "OVO Points", which customers can redeem for discounts or additional purchases. Businesses can creatively use these points in marketing, such as offering exclusive deals for high-point users.
Merchants can also easily set up the OVO e-wallet as a payment option through point-of-sale (POS) systems or e-commerce platforms, ensuring smoother transactions.
What are the key benefits of the OVO e-wallet?
QR code technology. QR codes make payments quick and easy when using the OVO e-wallet, reducing transaction times and simplifying the customerexperience. Merchantsmust prominently display QR codes near checkouts and train staff to assist customers with scanning and processing payments.
Loyalty programme integration. "OVO Points" encourage repeat purchases, helping businesses build stronger customer relationships that can lead to increased sales and enhanced brand loyalty. Merchants can promote special "OVO Points Days" or limited-time point multipliers to incentivise purchases.
Robust security. Merchants and customers alike can have peace of mind knowing their transactions are secure. The OVO e-wallet prioritises safety through data encryption, two-factor authentication, and strict compliance with financial regulations.
Widespread acceptance. More than 1.3 million QRIS merchants accept the OVO e-wallet as a payment method. This includes retail outlets, restaurants, ride-hailing services, and online marketplaces. Merchants can enhance their visibility by listing their business on OVO's partner directories or participating in OVO-sponsored campaigns.
Financial inclusion. Almost half of Indonesia's adult population (49%) remains unbanked. The OVO e-wallet provides these unbanked individuals access to digital financial services, allowing merchants to cater to this untapped market. To reach unbanked customers, merchants can highlight the cashless nature of the OVO e-wallet and promote it as a safer, more convenient alternative to cash payments.
How can merchants integrate the OVO e-wallet as a payment method?
There are two ways to integrate the OVO e-wallet into your business:
With existing systems. Merchants can easily integrate the OVO e-wallet through providers such as Antom or direct API connections. These integration solutions simplify the process, ensuring businesses can start accepting payments via the OVO e-wallet without significant technical hurdles. To make the process more seamless, merchants can work with an IT consultant or use OVO's step-by-step integration support.
With e-commerce platforms. Major e-commerce platforms in Indonesia, such as Tokopedia and Shopee, support the OVO e-wallet. This compatibility makes it ideal for online retailers looking to tap into the growing digital marketplace. Merchants can also utilise pre-built plug-ins to enable the OVO e-wallet as a payment method on their websites with minimal effort.
Expand your business to Indonesia and beyond with Antom
As e-wallets continue to dominate Indonesia's payment landscape, the OVO e-wallet stands out for its versatility, integration capabilities, and support from major fintech players such as Grab.
For e-commerce merchants looking to expand to Indonesia, leveraging the OVO e-wallet not only grants access to an extensive customer base of over 110 million users, but also streamlines payment processes crucial for business growth in Asia.
This is where Antom can help. With Antom, you can access an ecosystem of hundreds of payment methods across more than 40 countries — including the OVO e-wallet.
With our deep market expertise, extensive partnerships network, and comprehensive payment technologies, we can help your business boost revenue, and support market entry to Indonesia and beyond. Contact us to learn more about the OVO e-wallet and other payment methods around the world: https://www.antom.com/contact-us.
OVO Frequently Asked Questions (FAQs)
1. How does the OVO e-wallet work?
OVO e-wallet is a digital payment platform that lets users store money in an app and use it for various transactions.Customers can top up their OVO e-walletsthrough linked bank accounts, automated teller machines (ATMs), convenience stores, or mobile banking apps. Once loaded, customers can use their OVO e-wallet to:
- Pay for purchases at online and offline merchants.
- Transfer money to other OVO e-wallet users.
- Pay bills like electricity, water, or phone services.
- Access loyalty rewards and cashback programmes.
Payments are made using the app's QR code scanner or by selecting OVO e-walletas the payment methoda t checkout.
2. Why do merchants and consumers use OVO?
Merchants use OVO for:
Increased reach. The OVO e-wallet has a large user base in Indonesia, so merchants can reach a larger market.
Faster transactions. OVO payments are processed quickly, reducing wait times for customers.
Reduced cash handling. E-wallets minimise cash transactions, reducing risks associated with handling physical money.
Marketing tools. The OVO e-wallet provides loyalty rewards, cashback, and promotions that can attract more customers.
Consumers, on the other hand, use OVO for:
Convenience. They can pay using their smartphones without carrying cash or cards.
Rewards. OVO offers attractive cashback and loyalty points that customers can redeem for future purchases.
Secure payments. Transactions are encrypted and secure.
Versatility. Customers can use OVO across various online and offline merchants, making it a go-to payment method.
3. How can I start using the OVO e-wallet?
It's easy to get started with the OVO e-wallet. Just follow these steps:
- Sign up. Visit the OVO merchant registration page or contact their support team. Provide details like your business name, contact information, and bankaccount details.
- Verify your account. Submit the required documents, such as your business licence and tax identification number, for verification.
- Integrate with your payment system. OVO offers simple integration options for point-of-sale (POS) systems, websites, and mobile apps. It also provides API documentation to make the process seamless.
- Start accepting payments. Once integrated, customers can use the OVO e-wallet to pay for your products or services.
Here's a pro tip: If you're using platforms like Shopify, OVO offers integration options. Contact us or OVO's support team to learn more.
4. What are the benefits of using the OVO e-wallet as a payment method?
Integrating OVO as a payment method offers a host of benefits, such as:
Access to a growing user base. Integrating OVO makes it easier for businesses to connect with tech-savvy consumers. OVO is one of the most widely-used e-wallets in Indonesia, with 79% of consumers with an e-wallet using the app.
Enhanced customer loyalty. OVO's cashback and loyalty programmes encourage repeat purchases.
Secure transactions. OVO uses encryption and two-factor authentication to secure transactions.
Operational efficiency. Your business operations will run more smoothly with reduced cash handling and faster transaction speeds courtesy of OVO.
Cost savings. OVO offers lower transaction fees than traditional card payments.
5. Is it easy to use the OVO e-wallet for online payments?
OVO is designed with simplicity in mind. Once integrated into your e-commerce platform, customers can choose OVO as a payment method at checkout. They'll be redirected to the OVO app to confirm the payment, which is completed in seconds. The process is seamless and user-friendly, reducing cart abandonment rates for online stores.
6. Are there any security measures when using the OVO e-wallet for online transactions?
Here's how OVO ensures safe transactions:
Encryption. All data is encrypted to protect sensitive information.
Two-factor authentication (2FA). Users must verify transactions with a personal identification number (PIN) or biometric authentication.
Fraud detection systems. OVO monitors transactions for suspicious activities and flags potential fraud.
These security measures give both merchants and consumers peace of mind when using OVO.
7. How do I integrate the OVO e-wallet with my business?
OVO integration is simple via providers like Antom, or by working directly with OVO's merchant services team. Many e-commerce platforms also offer built-in OVO support. Merchants can visit OVO's website or contact their support team for detailed guidance.
8. Does OVO integrate with other popular e-commerce platforms, like Shopify or BigCommerce?
OVO supports integration with major e-commerce platforms like Shopify, BigCommerce, and WooCommerce. Plug-ins or API integration make it easy to add the OVO e-wallet as a payment option on your site. This allows you to offer more payment choices to your customers and increase conversion rates.
9. What are the costs of using OVO?
Transaction fees depend on the type of business and the integration method. However, OVO's fees are often competitive with traditional payment methods. Businesses should calculate potential savings by comparing OVO's fees to those of credit card payments.
10. Is customer support available for OVO?
OVO provides dedicated customer support to assist merchants with any issues or inquiries. Merchants must keep OVO's support contact information handy and train staff to escalate issues when necessary.
11. Who is eligible for OVO's merchant programme?
OVO's merchant programme is open to businesses of all sizes, including:
- Small and medium enterprises (SMEs)
- Large retailers
- E-commerce businesses
- Service providers, such as restaurants, salons, and transportation companies
To qualify, you need a registered business in Indonesia with a valid business licence. Freelancers and individual sellers can also join, provided they meet OVO's eligibility criteria.
12. What types of businesses can benefit from OVO?
OVO is ideal for various industries, including retail, hospitality, transportation, and e-commerce. Both online and offline merchants can leverage its benefits. Start by conducting a quick survey or analysing transaction trends to assess whether your customers are frequent OVO users.
