Interbank network provider Artajasa Pembayaran Elektronis says that the popularity of conventional payment methods in e-commerce has made the sector prone to fraudulent transactions, creating potential obstruction to the growth of e-commerce in Indonesia.
Artajasa information technology (IT) and operation director Bayu Anantasena said in Jakarta on Wednesday that fraudulent transactions happened due to the lack of a payment authentication procedure in conventional payment methods, including bank transfers and cash-on-delivery (COD) payment.
The company records that 75 percent of Indonesian e-commerce customers make payments through bank transfers, 20 percent through COD and the remaining 5 percent through credit cards and other methods.
“Fraudulent transactions occur due to a lack of authentication between e-commerce merchants, issuing banks and customers. As e-commerce businesses grow in Indonesia, transaction security becomes more important for their development,” he said.
The government expects that by 2020, that nation will record US$130 billion in e-commerce transactions, in line with the country’s anticipated digital boom in following years.
As many as 87 issuing banks are currently using Artajasa’s ATM Bersama network, including Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Tabungan Pensiunan Nasional (BTPN).