Digital wallets have become such an indispensable tool among younger Indonesians that the importance of promotions for user retention may be waning, according to Ipsos. 

The research firm carried out face-to-face surveys with 500 Millennials and Generation Z respondents in five major cities across Indonesia – Jakarta, Semarang, Yogyakarta, Palembang and Manado – with the respondent group dominated by people from the lower middle segment who have the greatest potential as digital wallet users.

The findings show that 68% of consumers surveyed use digital wallets at least once a week and 32% claim to use cash less frequently since experiencing the convenience of cashless transactions.

While most (71%) consumers surveyed were initially motivated to use digital wallets because of promotions, the majority (68%) have evolved in their user journey and now choose convenience as the main driver for using digital wallets, followed by promotions (23%) and security (9%).

GoPay was chosen by the majority of consumers (54%) as the digital wallet they would continue to use, over others, without the presence of promotions – almost twice as many as opted for its nearest rival, Ovo on 29%; Dana scored 11% and LinkAja 6%.

Olivia Samosir, Customer Experience Research Director, Ipsos Indonesia, explained that such “organic consumers” were influenced by the quality of the service on offer. “Consumers think that GoPay is superior in terms of safety, practicality, innovation, customer service and can be accepted everywhere,” she said.

“Players in the industry have to be proactive in shaping consumer behaviour by prioritising use cases, innovation and product quality,” she added.

For GoPay, managing director Budi Gandasoebrata claimed that its growth strategy had never been centred around promotions which by themselves do not create consumer loyalty and long-term demand.

“We continue to take a strategic approach by expanding the use cases for consumers, while offering segment-based promotions,” he said. “This measured strategy is one of our key strengths in building a sustainable business that is appreciated by everyone, including our investors.” 

Sourced from Ipsos