Grab (Case Study) — Increasing Grab eWallet Adoption in Indonesia

Sandeep Parashar
Nov 13, 2018 · 8 min read

Background

  • Grab has an eWallet (known as GrabPay). Customers can purchase virtual credits on the Grab app and use it as a payment method to pay for rides or other services. They can even send credit to other people who have Grab app installed on their phone.

Problem Statement

The adoption of GrabPay in Indonesia is poor.

  • Data shows that 75% of the customers are actively using cash, 20% of customers use credit cards and only a mere 5% of customers actively use the e-Wallet as the primary mode of payment.

Assumptions

No scope of assumptions!

After a thorough understanding of the design challenge. I didn’t find any scope of assumptions in this exercise.

Though given data itself represent that the current economy of Indonesia is highly dependent on cash and the adaptation ratio of digital payments seems quite low. The question was WHY? and that is something I wanted to get answered through research and data.

Customers paying through:
Cash (75%), Credit Cards (20%), e-Wallet (5%)


Design Process

I am practising User-Centered Design framework/process for the past few years. This iterative design process I have developed by taking reference of IDEO’s & Stanford d.school’s Design Thinking Process. It helps in identifying and validating most critical business & users objectives, that also ensures to keep users and business stakeholders involved throughout the process to validate the solution and avoid assumptions.

This 6 steps process has various methods to use at each stage. For this exercise, there was no scope of using all the steps and methods except few I have used it.

Take a look at my design process below:

User-Centered Design Process

Discover WHY?

As a first step, I started writing down those high level of things that I had in my mind to get more into the depth of WHY? and to identify the root cause of the problem.

As I earlier mentioned there is no scope of assumptions in this exercise, hence everything needs to be validated through research and data.

The list of questions I divided into 2 categories are the following:

Related to GrabPay:

These questions were to understand the current state of GrabPay in Indonesia.

  • When GrabPay is launched in Indonesia?
    To understand the existence in the market”

Related to Indonesia:

These questions were to understand the adaptation and growth of internet and banking in Indonesia.

  • Total Population of Indonesia?
    To understand the volume”

Insights From Research

Beautiful Jakarta City

The next step was to begin research to discovering WHY? and to get answers to the questions I had earlier defined.

I decided to go with the sequence of questions and explored around 40–50 websites e.g. “news media portals, Grab official website and press centre, banks official websites, PwC and KPMG financial reports & surveys, market & consumer behaviour research agencies portals etc.”

This entire planning, research activity and data collection took quite a good amount of time.

I am glad, with the help of these websites I could able to discover what I wanted to. Insights from the research are the following:

Disclaimer: Extracted data represents my research activity, there may be the possibility that it’s outdated or differ from the actual numbers due to collecting from various sources.

— Out of 265 millions of Indonesia’s population, 52% doesn’t have bank accounts and very low percentage of Debit cardholders.

— Banks in Indonesia often do not issue customers with a debit card with a 16-digit number that can be used for making digital payments.

— 45% customers rely on bank transfers and 55% make cash payments choosing COD as the preferred online payment mode.

— Payment through internet banking option requires users to enter multiple codes often using a physical secure code device. The user experience is poor and not mobile-friendly.

— 93.5% population doesn’t have access to credit cards.

— Low level of credit card adoption is due to strict rules around credit card issuance imposed by BI including stipulating that only customers with relatively high incomes are eligible for a credit card.

— 69% population doesn’t have mobile phone internet access and 74% population doesn’t have smartphones.

— Customers have various mobile digital payment options to make payments.

Consolidated Data:


Conclusion

Data represents that the adoption of eWallets in Indonesia is highly dependent on the various factors. Indonesia, like many developing countries, lacks established cashless payment methods and that’s a major hurdle to digital economy growth.

It’s not just credit cards, but the majority of the population doesn’t even have debit cards that can be a supporting factor to the digital payments.

Though, there is no doubt Indonesia is moving toward a cashless future as Indonesians are increasingly confident about using digital payment systems. Bank Indonesia and The Indonesian Govt. have launched a national campaign to support and promote the technology. Banks are also introducing a new program to promote cashless transactions.

Many people nowadays, especially the young generation can easily make payments using mobile wallets and QR codes. These new experiences aren’t an everyday life for everyone yet, but they are beginning to scale.

“Visa Says Indonesia is Ready for Cashless Society as 76% of Indonesians are More Confident Living without Cash for 24 Hours”


Ideation

Based on the research and data there are following approaches can be taken to increase the adoption of GrabPay.

Outside the App:

— There is a true opportunity for building credit and risk profiles for individuals to increase credit card owners.

— Collaboration with local shops and merchants to promote GrabPay’s quick and secure payment experience to their customers.

— Attract new users by offering discounts at local shops and shopping centres by making payments using GrabPay instead of Cash.

— Offer GrabPay credit rewards on inviting family and friends to promote Pay and Request features.

Inside the App:

Multi-language support for localities and tourists.

— Quick and easy user on-boarding flow to avoid friction.

— Promote Security and Privacy.

— Promote 1 app for all the services.

— Onboarding credit bonus to take 1st drive Free or such offers to create viral.

— Boost conversions using social proof psychology.

— User on-boarding features explainer ‘annotations’ to avoid friction and drop off.

— Invite family & friends members through importing phonebook to earn GrabPay credits.

— Chat feature with friends and family can rapidly increase the retention of the GrabPay.


App Usability Analysis

The best method of doing usability analysis through user testing. But due to not having the application flow/screens, I couldn’t make it possible. So I thought let’s review the given screens and share my thoughts.

1. Homescreen:


2. Balance / Wallet Screen:

3. Paying through QR Code / Success Payment / Grab Car Booking Screens:

Not reviewing these screens due to the time limitations.


Prototyping

Job Stories:

Before moving ahead to the initial paper concept I generally use job story framework to uncover the jobs to be done by the users. This is a powerful way to facilitate team conversation and discovery during the design thinking process. This framework is originally developed by Alan Klement and meant to focus on the context, causality and motivations. I am skipping this step for now since this mostly requires a team effort.

Initial Paper Concept:

  • It’s a quick on-boarding flow.

Low-fidelity Wireframes:

Thoughts Behind the Concept:

1st and 2nd (Home Screen):

  • Hamburger menu icon merged with the user image indicating to the navigation drawer.

3rd, 4th and 5th (Pay, Top Up Screen and Payment Options):

  • Wallet Balance is consistent in the header, which plays an important role during / before initiating the payment.

Note: This is just a concept prototype doesn’t represent to the actual design.


Thanks for reading :-)

Sandeep Parashar

Written by

UxDesign Leader || UCD Practitioner || HFI-CUA || Trainer || Mentor — Ex @Naspers @Tencent @Mangrove Partners @ibibo Group || http://sandeepparashar.com