The Development of Digital Payment Systems in Indonesia: a Review of Go-Pay and Ovo E-Wallets

Abstract

The development of new digital payment systems has been on the rise in Indonesia in the past two years and these digital payments are pioneered by transportation apps for the ease of payment when customers use these apps for mobility purposes. In the wake of Covid-19, digital payments are frequently used during quarantine, as people do their daily transactions online. In the form of mobile payments, these cashless transactions are becoming increasingly popular nowadays as well. The rise of Go-Pay and OVO, as the most popular e-wallets in Indonesia, emerged from the online transportation apps of Go-Jek and Grab, respectively. They come into existence due to some unexpected factors: fintech development, internet access and smartphone penetration, the majority of unbanked population in Indonesia, and transportation apps. This paper reviews Go-Pay and OVO as Indonesia’s major e-wallets, to compare and contrast both apps using secondary data, and to conclude on how e-wallets will become the payment trend post-Covid-19 in running daily business transactions.