Xendit Processes Transactions More Than 171 Trillion Rupiah
Payment gateway startup Xendit revealed that throughout this year (30 November 2020-30 November 2021) it has processed a transaction volume value (TPV) of more than $12 billion (more than 171 trillion Rupiah) with a total transaction of more than 150 million transactions per year, both in Indonesia and in Indonesia. Indonesia and the Philippines.
This figure grew by 250% on a YOY basis and 12% on a MOM basis. From the company’s internal data, it was revealed that currently Xendit has more than 3 thousand active merchants, consisting of 90% of MSMEs and 10% of corporations.
The largest transaction growth came from three industries, namely digital products which rose 400%, covering edtech, SaaS, healthtech, and other services; the service sector grew by 300%, covering schools, logistics, weddings, and others; and, financial services rose 150%, covering accounting software, investment, insurance, and others.
“The interesting thing about the service sector for weddings is that during the pandemic, many event organizers provided QRIS to provide red packets for the bride and groom online,” said SME Sales Lead Xendit Patricia Muljadi in a virtual press conference, Tuesday (14/12).
Some of Xendit’s Achievements
He further explained that the most widely used payment methods in Indonesia are e-wallet (43%), virtual accounts (42%), QR Code (7%), retail outlets (6%), and credit cards occupy the lowest position.
When examined more deeply, almost half of online sellers on Xendit have accepted payments via e-wallet. Therefore, the use of e-wallet has grown significantly from year to year, especially since the pandemic, with a total growth of 300% from the beginning of this year.
“The number of e-wallet users has also increased by 2.4 times compared to the same period last year. By November 2021, almost half of Xendit merchants already have a dedicated e-wallet channel to accept buyer payments.”
Furthermore, virtual account transfers remain the top choice for consumers in Indonesia with a twofold increase. As for retail outlets, being the second largest choice shows that over-the-counter payments are still relevant in Indonesia, especially in second and third-tier cities.
However, when compared to the previous year, both credit cards and retail outlets showed a significant decline. For retail outlets, for example, previously the portion was 12%.
Next, payments via QR Code increased up to seven times on a YOY basis. This acceleration is driven by government regulations that stipulate QRIS, so that all digital payments can be facilitated with only the same code.
The Highest Average Virtual Account Payment Compared to Other Payment Methods
In November, Xendit noted that 1 in 5 merchants have used QR codes to accept payments from buyers. Finally, the average transaction value for each payment method, virtual accounts being the highest compared to other payment methods.
Meanwhile, e-wallet is the lowest. Patricia said, based on their internal data, the average transaction value for each payment method varied widely – with virtual accounts occupying the highest number (an average of IDR 2.3 million) and the smallest e-wallet (an average of IDR 70 thousand).
According to him, this indicates that e-wallet is mostly used for small-value payments, similar to the QR Code which records an average transaction nominal of IDR 250 thousand.
Another achievement was also conveyed by Xendit, namely the Xendit Business Application which was launched last month. It is said that this application has had more than 250 new users.
They come mostly from the retail industry, digital products, and services. The payment methods they provide are e-wallet (62.2%), virtual accounts (26.8%), and credit cards (11%).
For the record, this Xendit Bisnis application allows business people who mostly use smartphones to operate their business, to manage and receive online payments from buyers.
In addition, Order Management allows business people to process all transactions automatically, from entering orders from buyers, arranging shipments, to recapitulating all purchases.
That way, online business operations can run smoothly and efficiently in terms of time savings. Early next year, Xendit plans to add features to this application, including integrating the Xendit Online Store with applications, managing inventory, checking postage, and ordering logistics services.