Keynote: The state of e-payment in Indonesia (LIVE BLOG)

While e-commerce sites have been coming out in Indonesia, the majority of the consumers – 99 percent – are still largely reliant on cash payments. This becomes a gap that needs to be addressed because if Indonesian consumers are going to embrace e-commerce, it has to go hand in hand with e-payments.

Despite e-payment being broken in Indonesia, there are companies like Doku, 2C2P, Coda Payments, and Veritrans looking to solve the problem under different domains. Veritrans’ co-founder Ryu Kawano (also a Harvard MBA graduate) will share his views on the the state of e-payments in Indonesia.

#02:27: Kawano takes the stage. Introduces Veritrans as a e-payment gateway in Indonesia.

#02:29: He explains the difference between PayPal and Veritrans: the former is a payment method while Veritrans is a payment platform integrating many methods.

#02:30: “A good payment method is something that balances security and usability,” says Kawano. A highly secure system that is inconvenient to use will not be integrated by consumers.

#02:31: Usability is important to keep consumers on your platform. “How many screens do you need to look at to complete a payment is a good gauge of usability,” Kawano says.

#02:33: In Indonesia a credit card payment system has four different screens or fields. While there are a number of e-payment solutions in the country, adoption is still low. The most common payment form is still the ATM.

#02:35: As the people get more comfortable with buying online, more and more people will use the e-payment route. Payments are set to move from the traditional methods to online banking and e-payment systems.

#02:37: percent of students and fresh graduates are still using manual bank transfer. Meanwhile, late 20-30 years old consumers are now slowly using online banking and e-payments.

#02:38: “Indonesian team members are as efficient as their counterparts overseas,” says Kawano. However, they lack the infrastructure in place.

#02:33: In 10,000 customers, there are 98 percent of successful transactions, which means there are around 200 failed transactions and around 100 people will complain about the service.

#02:40: The key to indonesian market success in e-payments is to have more players come in. The four pillars of e-commerce are: payments, online ads, logistics and internet infrastructure. Veritrans wants to focus on payments to help the Indonesian market grow.

END

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This is a part of our coverage of Startup Asia Jakarta 2013, our event running on November 21 and 22. For the rest of our Startup Arena pitches, see here. You can follow along on Twitter at @TechinAsia, and on our Facebook page.

(Editing by Terence Lee)