Case study: Contactless Micro-payment Card – Concept and Market of Micropayment for E-commerce in Indonesia

The challenge

One of the largest private banks in Indonesia was interested in understanding the knowledge about micropayment for e-commerce within and beyond Indonesia. In addition, the client wanted to know more about their product acceptance from their customers and merchants after the official launch.

The objective of the study was to understand the type of payment, especially micropayment, as well as the usage comparison and difference between internet users in Indonesia and abroad.

The client also wanted to:

Understand customer’s Usage Attitude Image (UAI) across five different segments
Gauge merchant satisfaction and awareness: With focus on reader existence, transaction capability, and usage barrier in merchants
Identify potential users and merchants by understanding how and where potential users spend their cash on daily basis
The process

Spire combined secondary research with real-time try-out on the available service, local and international, as well as gathered qualitative findings from people who were involved in C2C deal and transacted in the form of micropayment.

After the launch, Spire held telephone interview to understand the different point of views of different types of users. As for the merchants, retail visits/checks were conducted to examine the available payment (credit card, debit payment) and retail audits on reader/payment system were carried out as well. Spire also adopted the diary method with 450 potential users and merchants across three cities (Jakarta, Bandung and Surabaya).

The results

The client was able to digest the real concept of micropayment for e-commerce and transactions that involved micropayment in both national and international situations. The report had helped the client study current bank roles so that they can analyze their business strategy and improve their services in the future.

The client can also continue to evaluate the development of the product in Jakarta, and is continuing to roll out this product in other cities.

Project deliverables included a report that contained:

Concept of micropayment for e-commerce
Process of transaction that involves micropayment
Role of the bank in supporting micropayment transaction
General information about consumer’s awareness and perception from both users and non-users, including why they are using/not using, why they have/have not been topping up
Analysis of user’s profile, usage and feedback
Identification of potential users and merchants in Jakarta, Bandung and Surabaya by understanding how and where potential users spend their cash on daily basis
Spire’s recommendations addressed client’s current issues, problems, barriers from using, as well as growth strategies for its card and to better understand the customers (users, potential users)