E-wallet providers currently charge a premium from big retailers, while smaller merchants are charged minimally in an effort to encourage the adoption of e-wallets.
Plans for applying fixed fees may force smaller merchants out of the e-wallet network or cause e-wallet providers to increase incentives.
As a majority of Indonesia’s population have no bank accounts, its digital payments sector has grown into a multibillion-dollar industry.
The government’s decision on the proposed uniform fee would hurt all of the e-wallet players in the Southeast Asian country.
GoPay, Dana, LinkAja, and Ovo are some of the dominant payment platforms in Indonesia.
Under the new regulation, earnings on e-wallet transaction fees will be split between the e-wallet companies, third-party payment processors, and the association of major local lenders.