Indonesia prepaid card, digital wallet market likely to grow 10% this year

JAKARTA, Indonesia (MNTV) — The Indonesian prepaid card and digital wallet market is expected to grow by nearly 10% in 2025, according to a new report.

The report, compiled by Research and Markets, projects an 8.4% growth for the card and digital wallet sector, bringing its market capitalization to $7.94 billion by the end of 2025. 

The report forecasts a compound annual growth rate (CAGR) of 6.6% between 2025 and 2029, which is poised to grow the market capitalization to over $10 billion. Between 2020 and 2025, the industry’s CAGR stood at 13%, but stiffer regulations and a changing consumer climate may slow industry growth.

With contactless cards going mainstream, prepaid card solutions are racking up wider adoption levels in Indonesia. Furthermore, the e-commerce and ride-hailing sectors are powering the need for prepaid card solutions, while the giant strides in cross border payments are playing their part in the sector’s growth.

“As the adoption of digital payment technologies accelerates, prepaid cards will become an even more essential component of Indonesia’s financial ecosystem,” read the report.

Analysts at Research and Markets say that closed-loop cards accepted at specific retailers will see their market share growth slow down before the end of the decade. On the other hand, open-loop cards will be the biggest growth driver by card type, with mid-tier businesses leading in terms of business segmentation.