Trends of e-Wallet during the Pandemic, ShopeePay Shows the Fastest Growth

Kapanlagi.com - The pandemic situation that has made many people spend time at home has indeed created new trends in shopping. Online shopping has become the most frequently done activity by people to fulfill their needs while staying at home. This habit has also changed the way transactions are made, where e-wallets are widely used during the pandemic.

The trend of using digital money and digital wallet services in Indonesia itself has been increasing every year. Based on data from Bank Indonesia and Databoks, in 2019 the value of electronic money transactions reached Rp95.75 trillion. There was even a surge of 241.2% in the use of electronic money in the fourth quarter of 2019. Now, in the current pandemic, its usage continues to increase rapidly.

The World Health Organization (WHO) has issued recommendations to conduct non-cash transactions as an alternative to minimize physical contact and reduce the risk of transmission. WHO has stated that there is a possibility of virus transmission through cash.

Meanwhile, there are 51 electronic money providers that have obtained permits from Bank Indonesia. Some prominent and top-of-mind names include OVO, GoPay, DANA, LinkAja, and ShopeePay, which is a new player. Competing with other big names, ShopeePay has managed to show rapid growth, especially during the pandemic.

For your information, ShopeePay, launched by SeaMoney Indonesia, is an electronic money and digital wallet service that obtained a license from Bank Indonesia in August 2018. This service was officially released in November 2018. You can use it as one of the payment methods when transacting through one of the largest e-commerce platforms in Indonesia, Shopee. Not only that, but ShopeePay has also expanded its reach, so this service can also be used to make purchases from thousands of types of merchants, such as food, drinks, retail, and so on. 

Transactions using the QRIS system and partnering with thousands of merchants in various cities, ShopeePay's popularity has increased rapidly within 2 years since its first launch. This e-wallet is also supported by the ShopeePayLater service, which is among the top 3 most popular installment payment systems without a credit card in Indonesia in 2019 according to Daily Social's report. 

Digital payment transactions at merchants have reached 2.2 million transactions during March 2020 according to data from Bank Indonesia. The total amount reached IDR 75.1 billion. Snapcart's research on Indonesian shopping behavior during Ramadan and Eid amid the pandemic also shows that Shopee is the most remembered and used e-commerce platform by the public. Furthermore, Shopee has also become the most widely used platform during Ramadan and Hari Raya this year, far surpassing its competitors.

The research conducted by iPrice in collaboration with AppAnnie and SimilarWeb shows that Shopee is the e-commerce platform with the largest number of users in Indonesia in the fourth quarter of 2019. This achievement continues in the first quarter of 2020, where the latest data from iPrice and SimilarWeb also shows that Shopee is the e-commerce platform with the highest number of visitors in the country. This factor also provides ample room for ShopeePay to continue to grow.

Data from YouGov released in June 2020 shows that ShopeePay has successfully become one of the top 3 e-wallets with the largest number of users in Indonesia. What's more impressive is that ShopeePay has also experienced the fastest growth during the pandemic, far surpassing other e-wallet providers.

The opportunity for ShopeePay to surpass other e-commerce platforms is predicted to be even greater. The pandemic situation, which has given rise to new habits, also encourages people to continue relying on e-commerce and electronic payment systems to meet their needs. This also presents an opportunity for ShopeePay to continue to be an electronic money service with rapid growth in Indonesia.

(*/wri)