PayCly Blog

An Introduction to the Indonesia Economy

Indonesia is the world's 4th most populous nation and 7th largest economy in terms of purchasing power parity (PPP), according to International Monetary Fund (IMF). The growth rate of the Indonesian economy in 2022 is expected to be 5.1%, which is far better than the US (2.3), Europe (2.6) and other advanced economies (2.5). A statista report indicates that the e-commerce penetration rate in Indonesia will be about 64 % in 2022, which is expected to rise 77 % by 2025. Another report from Global Data demonstrates that the e-commerce market in Indonesia is growing at a pace of 23.8% in 2022.

According to Bain & Company and Facebook, only six Southeast Asian countries (Indonesia, Singapore, the Philippines, Malaysia, Thailand, and Vietnam) have added 70 million more people to shop online since COVID-19 began. The figure crossed 350 million people in southeast Asia. There are more than 2 billion online shoppers in the world as of now, and continuously growing at an impressive speed.

Now we have an idea of the Indonesian economy, the growing e-commerce market, fondness for international goods, and a record-breaking growth rate. If a domestic or international business wants to take advantage of this open-air and huge market. In that case, it needs the Best Payment Gateway in Indonesia to accept payments from local and global customers.

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Need for the Most Suitable Payment Gateway in Indonesia

If you are a merchant doing business in e-commerce, gambling or online gaming, the FX market, fantasy games, entertainment, and others, you need to accept payment for the goods. The payment gateway is the entity that enables you to do so. The mechanism that allows you to do so is the payment gateway. There are a large number of payment gateways available, but you must pick the best one because the payment gateway serves both as a protector and an intermediary.

A payment gateway enables a business to accept payments using nearly all methods, including credit cards, bank transfers, cryptocurrency, and other modern modes.

If you are a foreign company intending to perform e-commerce in Indonesia, opening a local merchant account could be challenging. In this situation, the most straightforward course of action is to set up an offshore corporation and use a third-party payment gateway to carry out your online purchases in Indonesia.

What is a Payment Gateway?

A payment gateway serves as the connection point between an e-commerce website and your merchant account. It is a piece of technology that gathers payment information from customers and securely sends it to the bank of the retailer. Additionally, it provides the retailer with a message of payment clearance or rejection. A payment gateway helps you receive payment by securely validating your customers' payment details, confirming the availability of funds and the transaction limit, and so forth.

An online payment gateway (cloud-based platform) enables you to incorporate technology into your e-commerce website easily and supports continued revenue growth for your business. In addition to giving your customers the convenience of plug-and-play and facilitating shopping for them, it secures sensitive payment data with an encrypted data transfer between various contexts.

An international payment gateway enables overseas clients to make payments in their own currencies for any purchase.

Type of Payment Gateway

The two types of payment gateways are hosted and non-hosted, respectively:

In a hosted payment gateway, customers are initially forwarded to a payment page other than the retailer's website or mobile application. After completing the payment, the user is once more sent to the merchant's website or app. Simply put, these payment gateways act as third-party service providers that allow companies to accept payments.

Hosted payment gateways make payment setup straightforward, reduce merchant liability, and provide top-notch data security to the merchant. Hosted payment gateways also help organizations reduce fraud so merchants can focus on their core competencies.

Non-hosted payment gateways, also known as on-site or on-app payment gateways, do not direct-redirect to third-party websites to complete payments. A non-hosted payment gateway allows clients to pay only on the vendor's website.

Merchants have total control over the checkout process with non-hosted payment gateways, including layout and design, and may provide customers with a seamless shopping experience.

What Essential Features Should a Payment Gateway Have?

Security, Fraud, and Chargeback Prevention Systems

Online companies are more vulnerable to fraud than traditional organizations. According to a Merchant Savvy survey, international payment fraud has increased thrice since 2011. The amount was $9.84 billion in 2021; it rose to $32.39 billion in 2020 and is anticipated to reach $40.62 billion in 2027. Furthermore, 47% of the company's participants confessed that they had been defrauded in the preceding two years.

Online fraud surged 68 percent in the US from the previous year. Even in Europe, fraud is a widespread problem. According to Tech Wire Asia, the Asia-Pacific is now more susceptible to online fraud than any other area, with one out of every four companies falling prey to it.

Chargebacks and refunds are a chronic issue for international online businesses due to the ease of customer access. Due to this, the e-commerce industry is considered high-risk. To address this problem, a high-risk payment gateway must provide its clients with a three-tier chargeback protection tool.

The best payment gateway provider should prioritize protecting its merchant's businesses from all forms of fraud and chargebacks. The ideal payment gateway must offer these cutting-edge fraud prevention tools to its merchants:

  • When a transaction is made, the Address Verification System (AVS) checks to see if the buyer's billing address (including the billing avenue address and postal code) matches the billing address stored in the card issuer's database.
  • The CVV Checker operates in a similar manner to AVS. It verifies whether the card is legitimate or not.
  • An AI-based method for assessing the level of risk in a transaction is called transaction risk scoring. It aids in determining the transaction's validity.
  • User identities are confirmed using a security mechanism called 3D Secure Authentication. This increases the security of payment card transactions when the card is not physically present.
  • To protect customer card information, firms that receive, store, or send credit card data must comply with PCI DSS. It is in charge of building and maintaining secure networks, running a vulnerability management program, enforcing rigorous access controls, and regularly testing and monitoring the network.

A payment gateway must include all these security features, including multi-factor authentication and other newly created fraud protection capabilities.

Alternative Payment Options

In Indonesia , when a customer buy something from a merchant's website it need diffrent payment options. A bank transfer takes the top spot, accounting for 34% of all e-commerce transactions, according to Statista. Digital wallets come in second with 27%, and cards follow in third with 15% of the total transaction. Additionally, there are various payment methods that Indonesians choose.

More than 2.8 billion people use credit cards in the world today. The use of credit cards has significantly increased since COVID-19. Over 42% of consumers, according to a study, use credit cards to complete online transactions. Without accepting credit cards, it is nearly impossible to conduct business in today's world. Despite these facts, online shoppers currently favor digital wallets as their preferred payment method. Online buyers pick the "Buy Now, Pay Later" option in about 40% of cases.

The preferred payment options vary by state. It is reliant on the country's monetary system. Credit or debit cards are used more frequently than any other form of payment in America, and Europe, according to a Statista report. Digital wallets, however, outweigh credit cards and other conventional payment methods across Asia-Pacific. Users in the electronic age use cryptocurrencies in addition to more traditional payment options like credit or debit cards, online transfers, digital wallets, etc.

An international high-risk merchant account provider must provide as many payment options as possible to increase the retention rate of customers and help its merchants grow.

Acceptance of Multiple Currencies

Having material in many languages-such as press releases, catalogs, and product descriptions-is not sufficient for a multinational company. Currency is the most crucial consideration when localizing a website out of all the essential elements.

Prices should be shown in the local currency to avoid losing potential clients to internet retailers. According to a Penton Research and E4X survey, one-third of customers left the shopping cart when they did not see their preferred currency on the checkout page.

Accepting regional currencies encourages customers to make larger purchases; therefore, the best international payment gateway should have multi-currency support based on region. Customers can quickly determine the actual cost of things, preventing confusion caused by currency conversion.

Multilingual Support

When a customer tries to purchase from an international merchant's website, clicks the "Buy" button, and finds the checkout page in a different language, he may decide to back out of the purchase. The explanation is straightforward: Every buyer wants to see the exact price, the goods, and the terms and conditions in their native tongue to ensure that everything is accurate. Keep in mind that every tiny error on your checkout page damages the reputation of your website or application and results in lost sales.

A payment gateway must handle several languages as part of its customer-centric strategy. It elevates you beyond your opponents and boosts customer retention and loyalty rates. It enhances the consumer experience, which contributes to building brand value.

Customization and Integration

An online store is constantly looking for ways to simplify the user experience on its website or mobile application. What happens, though, if the checkout procedure is inconvenient? Your revenue and customer engagement will fall as you steadily lose the trust of your clients. A payment gateway needs to be user-friendly, simple to integrate, and flexible in order to meet the needs of a merchant.

The best payment gateway integration should be compatible with all shopping carts. Some of the best payment gateway service providers give vendors access to their own shopping carts so they may sign up for the service quickly and cheaply. With the "plug and play" integration solution, it's simple to meet eCommerce requirements and support enterprises' efficient and adaptable payment processing.

Industry Support

Before selecting a payment gateway, business owners must ensure that it supports their existing industry and their anticipated future business. Make sure the service provider can provide you with a high-risk payment gateway if you are a high-risk merchant. These are some industries a Payment Gateway must provide its services:

  • E-commerce industry
  • Furniture industry
  • Travel industry
  • Forex market merchant account
  • IPTV or OTT industry
  • Casino merchant account
  • Gambling or Betting merchant account
  • Fantasy games industry
  • iGaming industry
  • Adult toys industry
  • Tobacco and E-cigarette industry
  • Tech support industry
  • SMM industry

Only a few significant industries have been covered here, but PayCly believes the ideal payment gateway should support basically all industries.

24*7 Customer Support

A payment gateway that offers 24-hour customer service is necessary for an international merchant who operates around the clock. Customer service should be accessible in native and foreign languages and provide a proper and prompt response to any issues.

We have now covered the essential components of a payment gateway. A merchant must carefully consider the mentioned aspects before choosing a payment gateway.

PayCly, the Fully-Feature Payment Gateway available in the country

PayCly has established itself as the most reliable Southeast Asian payment gateway. We are one of the leading payment gateways in the world, and we offer our services globally. We have been offering our top services in Indonesia for many years, and by providing the best high-risk payment gateway, we consistently assist Indonesian businesses in growing. We also help Indonesian enterprises to expand their global presence by providing them with the best international payment gateway. Additionally, we help firms comply with international laws and regulations and reduce their tax and other costs.

By offering a local merchant account or third-party payment gateway, we also provide our services to overseas merchants who want to reach the lucrative Indonesian market.

In the Indonesian market, PayCly is the only fully functional payment gateway. The following are some of the features PayCly offers you: -

  • Numerous "Low-Risk" and "High-Risk" sectors are supported by PayCly. The "High-Risk Gateway" is our area of expertise. We offer our services to all of the industries mentioned above as well as others.
  • The payment gateway provided by PayCly has a sophisticated anti-fraud system to help you identify and stop payment fraud as quickly as possible. PayCly's secure payment gateway uses artificial intelligence, pattern recognition, user profiling, AVS, CVV Checker, Fraud Scoring, 3D Security Authentication, PCI DSS compliance, and other cutting-edge security measures to safeguard its merchant from any fraud.
  • Pre-transaction, post-transaction, and source detention Chargeback Prevention Tolls are used by PayCly. This sophisticated form of chargeback protection is not offered by the majority of other payment gateways.
  • In order to increase your sales, PayCly provides you with various alternative payment methods, such as credit or debit cards, buy now, pay later, virtual wallets, and bank transfers.
  • PayCly connects seamlessly with all shopping carts. Simple integration makes the process more efficient, fast, and adaptable.
  • PayCly provides you with rapid payment processing because we think that the fastest payment speed also contributes to increased client trust.
  • PayCly also offers its merchant Recurring Billing System: Subscription-based businesses like OTT, IPTV, Dating, and Gaming apps business can definitely take advantage of recurring billing.
  • The customer is all to PayCly. We prioritize our customers above all else. Our main objective is to satisfy customers since happy customers are more likely to come back to us in the future. Whenever they need us, we are available to assist them.

How to Apply for Indonesia Payment Gateway on Our Website?

Complete the application form by providing information about your company and the required services. Our expert team will recommend the best banking partners from our network.

These are the details you need to provide us during the application:

  • Name
  • Business name
  • Region of operation
  • Business contact information
  • Company URL
  • Brief about your business
  • Previous processing history?
  • Last three months' business bank statements
  • Memorandum and articles of association

After the payment gateway application has been approved, we will provide a test payment gateway ID to your website so it can be integrated. After observation, permanent activation will be done.


This article has seen many aspects of the market and payment gateways. We now know what a payment gateway is, the need for a payment gateway, what essential features should a payment gateway have, and how to choose the best payment gateway in Indonesia. We have also examined PayCly's advancement over hundreds of payment gateways. We can say that no other players in the market are providing the level of facilities that PayCly is providing. We wish you luck.

Frequently Asked Questions (FAQs)

What is an International Payment Gateway?

An international payment gateway is a mechanism that collects payment information from an international customer and sends it to the merchant's bank with total safety. A global payment gateway enables international customers to make payments in their currency for any purchase.

What should be the fee structure?

Price is an issue that must be counted against service quality in every business collaboration. The pricing is a significant consideration while selecting the ideal gateway. Various gateways may have different pricing schemes. They may include monthly fees, fixed fees per transaction, variable fees depending on the value of the transaction, and additional fees for things like chargebacks, foreign payments, and currency conversions.

What is PCI DSS?

The Payment Card Industry Security Standards Council (PCI SSC), an independent body founded by Visa, MasterCard, American Express, Discover, and JCB, is responsible for regulating and managing the Payment Card Industry Data Security Standard (PCI DSS), a set of guidelines. Firms that receive, store, or send credit card data must comply with PCI DSS to protect customer card information.

Does PayCly provide white-label payment gateways?

The white label payment gateway provides a customized, high-tech, integrated, and manageable payment gateway specially made for your requirements. Your brand name will be displayed and promoted fully over the payment gateway.

Yes, PayCly offers its clients a white-label payment gateway.

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