Indonesia is the fourth largest mobile market in the world, with one Indonesian owning approximately more than one phone. Internet access in the country is also high at almost 60% penetration. The country is witnessing an emerging trend where an increasing number of Indonesians are switching to mobile phones to conduct transactional services, especially in the ecommerce space. With a high proportion of population, particularly in the rural areas, continuing to be unbanked; mobile wallets are seen as an ideal medium to include the unbanked in the financial system. Considering the large and untapped consumer market for mobile wallets, many companies are entering the mobile wallet space to capitalize on the huge growth opportunity.
South East Asia’s largest mobile operator Telkomsel Indonesia, entered into a partnership with Finnet Indonesia and Verifone Mobile Money to launch TCash Tap mobile wallet in Indonesia in 2015, to target Telkomsel's more than 140 million subscribers to tap and pay using their mobile phones.
Fast food outlets, supermarkets and cinemas will accept any near field communication technology (NFC) enabled mobile devices and allow TCash mobile wallet consumers to 'tap and pay' in thousands of stores across Indonesia.
The service will utilize Verifone Mobile Money's software to enable mobile phones and merchant terminals to seamlessly connect to the TCash wallet. Finnet connectivity will provide mobile users access to Indonesia's banks across the country.
Mobile wallets in Indonesia, including TCash Tap, are likely to see a high adoption rate, especially due to government’s push towards ‘cashless Indonesia’ initiative. The country recently launched the Gerakan Nasional Non Tunai program or the National Movement of Non-Cash, to move Indonesia towards becoming a cashless economy. Mobile wallet brands are expected to benefit from this initiative and witness high growth rate in the coming years.
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