Ways to send money in and out of Indonesia have been completely reshaped ever since the country’s government announced its commitment to move to a cashless society seven years ago.
The use of electronic payment methods is increasing rapidly and was worth IDR 201 trillion ($13.95 billion) in 2020, growing by 38.62%. E-payments are expected to rise again in 2021, by a further 32%.
And, as a result, e-wallet usage is booming, especially among the younger population aged 18–29.
More traditional financial services such as credit and debit cards and banking networks are being replaced with fintech like digital wallets, so this needs to be considered carefully when selecting ways to transfer money to and from Indonesia.
Key Questions To Ask When Transferring Money To And From Indonesia
How convenient is the service to use at either end of the transfer? Indonesia with 30% is second only to China (37%) when it comes to global digital wallet usage, but is ahead of Thailand (20%), India (19%) and the global average of around 13%.
The quick and easy benefits of using e-wallets are becoming part of the country’s culture. So, you need to bear this in mind. Certainly, any payment provider you choose should offer a desktop system and smartphone app that is easy to use for both the sender and recipient and allows quick and easy deposits and withdrawals.
How quickly will the funds arrive? If you require a fast money transfer, then make sure you check how long it takes for each different type of transfer option. For example, cross-border international bank transfers can take 3–5 working days (or longer in some cases) to be processed by the recipient’s bank.
But an e-wallet solution, like STICPAY, enables account owners to send and access funds almost instantly if both parties have an account.
Are there any regulations covering money transfers? Many countries have specific laws or rules in place regarding money transfers. In Indonesia there are limits on how much you can transfer between bank accounts. And e-wallets like STICPAY are also regulated — with a maximum monthly digital wallet transfer set at 20m IDR and rules on what they can be used for. Understanding the legal situation will help decide which method to use for your payment transfer.
How much will the fees cost? The fees you pay to transfer money depend on the method being used and whether the transfer is being made locally or internationally. Usually, service providers charge their customers a fixed fee, or a percentage of the amount being sent and received (or sometimes both!). There may even be set-up fees to open an account.
If you combine international currency conversion with your transfer, the provider may offer a less-competitive exchange rate.
To avoid high forex costs however, using an e-wallet like STICPAY allows customers to open multi-currency accounts in IDR and 28 other national currencies.
How secure is the service? Choosing a secure and safe means of payment is critical. This is especially relevant in Indonesia, which is regularly cited among the worst countries in the world for credit card fraud, for example.
Other forms of payment that rely on full access to bank accounts and personal information can be subject to cyber fraud too. And this is another reason why e-wallets, like STICPAY, are becoming popular for money transfers.
Users’ sensitive financial data is protected with advanced encryption, generating a random number sequence for each transaction. Therefore, in the unlikely event that hackers intercept the transaction, they cannot use the data they acquired.
Furthermore, e-wallets can be protected with biometrics (face recognition, fingerprints), a PIN, or a password.
The Most Popular Types Of Money Transfer Options In Indonesia
There are many ways to transfer money to and from Indonesia. But with around 50% of the country unbanked, without access to a bank account, it’s worth exploring the best options carefully.
Digital Wallets: E-wallets like STICPAY are extremely popular in Indonesia because of their convenience and lower transfer fees. Users can fund their e-wallets using credit and debit cards, bank transfers or cryptocurrency — then use the service to send money to others.
Cryptocurrency transfer: Using ‘virtual currency’ is popular for payments to and from Indonesia. This service can be fast, with minimal fees and is highly secure. But some technical knowledge is usually required to be able to use it.
Online Money Transfer: These operators use their own ‘non-bank’ networks to transfer money to a recipient’s bank account. While the services can be fast, fees can be high — especially when it involves an international currency exchange.
Currency Broker: Foreign exchange companies and brokers change your money into another currency and send it internationally.
P2P providers: Peer-to-Peer or person-to-person solutions transfer money directly between two parties. To access and send the money both users often require accounts with the same third party system being used.
Bank Transfer: Online transfers between banks pay money directly into a recipient’s bank account from another. Domestic wires between banks in one country usually take 1–2 days with little or no cost. However, making cross-border bank transfers often attracts high costs for senders. When intermediary banks are required to clear the transaction through the SWIFT banking network they can take much longer.
Five Reasons To Use STICPAY For Money Transfers To And From Indonesia
- An award-winning e-wallet service, STICPAY supports 29 different national currencies, three cryptocurrencies Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) and 19 languages. It offers convenient iOS and Android smartphone apps alongside a web-based platform.
- Security is extremely important, and this e-wallet implements strong anti-fraud features and rigorous Know Your Customer (KYC) and Anti Money Laundering (AML) checks to protect its customers.
- Customers are offered a wide range of payment methods for deposits and withdrawals, including international and local bank wire, Visa, MasterCard, UnionPay China, and cryptocurrencies (Bitcoin, Ethereum, Litecoin). The platform also features a built-in converter to exchange crypto to fiat currency and vice versa.
- International money transfers can be made within minutes between two STICPAY account holders, with minimal fees.
- In Indonesia, STICPAY offers low-cost and convenient local bank wire to its users. This allows you to receive funds to your bank account in your own currency. Check all fees for money in and out of Indonesia here.
How To Start Sending Money With STICPAY
STICPAY is an excellent choice to transfer money in Indonesia. To get started, you must create an account, which only takes a few minutes.
Once the simple form is completed, you need to confirm Proof of Address (POA) by submitting documents such as utility or phone bills, bank statements, or letters issued by a recognised public authority.
STICPAY also requires Proof of Legal Existence (PLE) identity, with options to use a passport, National ID card or driver’s licence.
It’s also recommended that you set up Two Factor Authentication for security before choosing one of the options to add funds to your account. Then, once your funds have arrived in your STICPAY account, you can make money transfers or use your account to buy products and services.
Recipients will be able to withdraw the funds you send instantly.
Are you ready to transfer money with STICPAY? Create an account now!
Have questions? Contact STICPAY’s rockstar customer support team to get your queries answered 24 hours a day!
Have you liked us on Facebook yet? Are you following us on Twitter and Instagram?
Join STICPAY on LinkedIn!
Originally published at https://www.sticpay.com on May 24, 2021.
