October 26, 2021
The latest research from Lembaga Demografi, Faculty of Economics and Business, University of Indonesia (LD FEB UI) estimates that the Gojek and GoTo financial ecosystems will contribute 249 trillion rupees ($ 17.6 billion ), or 1.6% of Indonesia’s GDP, to the national economy in 2021.
LD FB UI research, conducted in August 2021, also reveals that GoPay, which is part of GoTo Financial, has key implications in promoting financial inclusion, particularly relevant in light of the need for a critical economic recovery. as Indonesia surpasses the pandemic.
According to a World Bank publication titled “Financial Inclusion and Inclusive Growth”, access to the formal financial system and to appropriate credit can potentially facilitate investment in education and business opportunities that could, in the long run, boost economic growth. economic growth and productivity.
Digital payment improves access to financial services
In recent years, Indonesia has experienced a wave of digitization or “digital switchover” across the country and across social and economic demographics. President Joko “Jokowi” Widodo sought to use this momentum of digitization to promote financial inclusion by demanding easy access to formal financial services for all levels of society.
Yet many Indonesians remain unbanked or underbanked, and with only 40 percent of Indonesia’s population financially literate, the country’s coordinating economic affairs ministry has stressed the need for increased financial education and an understanding of base of financial services.
LD FEB UI research results show that one in five GoPay consumers are not or underbanked, which means these users do not have a bank account or are not actively using their accounts. GoPay is their first exposure to the use, enjoyment of benefits and confidence in digital financial products. By introducing users to the ease of payments with electronic money, GoPay offers users an easy way to experience digital payments for the first time.
Providing easy access to financial technology from digital payments is expected to lead to financial deepening, a key pillar for ensuring sustainable and entrenched growth driven by digital finance. LD FEB UI Director Turro Wongkaren confirmed that digital payment services can be a first step in the user’s journey to more sophisticated financial services. “By starting with digital payments, people can develop an interest in trying investments, credit and other financial services,” he said.
The access GoPay provides to financial services is driving behavior change. One in four users who had never been exposed to payment products and banking services started using banking services after using GoPay. Research also found that 56% of GoPay users have a better understanding of digital payments after using GoPay, while 45% have started using e-wallets more frequently.
GoPay addresses consumer needs beyond cashless payments
The function of cashless payments has moved far beyond simply meeting the needs of consumers for day-to-day transactions and has evolved into a powerful money management tool that users, from all walks of life, can. use to plan and invest in their financial future. Electronic money like GoPay serves a valuable purpose by connecting users to the products they want and need to make it easier for people to plan and manage their digital spending and use the right financial services to serve their goals. financial.
One in four users say GoPay and GoPaylater have helped keep their finances in check, and one in three users say they have benefited from using GoPay, which forgoes installing a separate app to meet their banking and financial needs .
Winny Triswandhani, Head of Corporate Communications at GoTo Financial, said the latest research from LD FEB UI reflects GoTo Financial and GoPay’s mission to accelerate financial inclusion for micro, small and medium enterprises (MSMEs) and the general public.
“Financial inclusion benefits all Indonesians and we are committed to fostering financial inclusion for both individual consumers and businesses. The appreciation of our users and the benefits of our digital financial services is reflected in the steady growth of our gross transaction value. [GTV], which is well above pre-pandemic levels. Through an ever-expanding range of digital financial solutions, we will continue to offer cashless payments, digital financial services as well as comprehensive business solutions that can help MSMEs across industries tap into a broader consumer base to boost their growth and help stimulate the Indonesian economy as we overcome the pandemic, ”said Winnie.