Source: GlobalData
Indonesia credit and charge card payments market to grow by 3.2% in 2025, forecasts GlobalData
Posted in Banking
Indonesia’s credit and charge card payments market is expected to register a growth of 3.2% to reach IDR441.8 trillion ($27.9 billion) in 2025. This growth will be driven by the rising consumer spending and increasing consumer preference for cashless transactions. Enhanced by value-added incentives such as cashback offers, flexible repayment options, and installment facilities, the market is set to maintain an upward trajectory, despite the evolving global economic challenges, reveals GlobalData, a leading data and analytics company.
GlobalData’s Payment Cards Analytics reveals that credit and charge card payment value in Indonesia registered a growth of 7.8% in 2024, driven by the rise in consumer spending.
Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments: “Public awareness of the advantages associated with credit card usage is gradually rising in Indonesia. The launch of domestic credit card scheme like Kartu Kredit Indonesia (KKI) has also contributed to the rising adoption of credit cards. Consumers frequently utilize these cards to capitalize on benefits, including cashback offers and rewards programs.”
While credit and charge card penetration is low compared to debit cards, consumers are increasingly using credit and charge cards for payments, with the frequency of payments per card standing at 24.2 times in 2024 (compared to 3.9 for debit cards) and is anticipated to further rise to 30.9 in 2029. This is driven by banks offering flexible repayment options and value-added benefits such as cashback, reward points, discounts, and installment facilities.
Bank Mandiri offers an installment facility to Visa Credit Card Shopee and Mastercard Livin’ Everyday credit card holders. Likewise, Bank Negara Indonesia offers BNI installment plan allowing its credit card holders to convert purchases into three, six, nine, 12, 18, 24, and 36 monthly installments.
Meanwhile, to mitigate the risk of over-indebtedness, banks provide debt consolidation programs. HSBC Indonesia, for instance, presents a Debt Management service to clients who have utilized credit cards or personal loans. This service includes options to lower the amount of each installment, extend the repayment term, or decrease the total amount owed by waiving interest or fees. These measures are designed to assist customers in managing their financial obligations more effectively.
Gradual improvement in payment infrastructure is also contributing to the rise of credit and charge cards in the country, with the total number of POS terminals rising from 1.4 million in 2020 to 2.2 million in 2024. The figure is expected to reach 3 million by 2029. Overall, the number of POS terminals per million inhabitants in Indonesia stood at 7,793 in 2024, which is higher compared to some of its peers such as India (6,964), Vietnam (5,988), the Philippines (4,891), and Cambodia (2,477), though there is significant room for further expansion of POS infrastructure.
Challa concludes: “While the market size for credit and charge cards is smaller compared to debit cards, it is experiencing notable growth. This is due to growing consumer spending, and growth in e-commerce payments. However, challenges such as the ongoing global trade tariff dispute among major countries, and geopolitical uncertainties remain bottlenecks to the market. Overall, the value of credit and charge card payments is forecast to register a slower compound annual growth rate (CAGR) of 9.8% between 2025 and 2029 to reach IDR622.3 trillion ($39.2 billion) in 2029.”