The value of digital transactions in Indonesia is projected to grow by 16.73% in 2025, from IDR 2,491.68 trillion in 2024 to IDR 2,908.59 trillion. This data is revealed in a report by the Center of Economic and Law Studies (Celios), quoted by Infobank.
This surge reflects a behavioral shift in consumers who are now less likely to visit bank branches or ATMs and instead prefer online banking and mobile apps.
In addition, digital lending is also predicted to grow sharply—by around 20%, from IDR 302.70 trillion to IDR 365.70 trillion in 2025.
In our increasingly digital world, digital transactions have become an inseparable part of daily life. From online shopping and paying bills to bank transfers—everything can now be done in seconds via smartphone or computer.
According to the We Are Social 2024 report, more than 210 million internet users in Indonesia are actively using digital services, including for financial transactions. However, behind this convenience lies new challenges in security and data protection. This article explores digital transactions in detail and how to conduct them safely.
A digital transaction is any form of payment or value exchange conducted electronically using the internet, apps, and digital systems.
According to Bank Indonesia, digital transactions include activities such as payments via QR codes, debit/credit cards, e-wallets, and mobile banking. The goal is to provide ease, speed, and security in financial transactions—both for individuals and businesses.
Key characteristics of digital transactions:
Cashless
Internet-based
Real-time or instant
Automatically recorded
Requires identity verification
Relies on security tech like OTP or biometrics
Here are several common types of digital transactions:
E-Wallets
Apps that allow users to store balance and pay directly via mobile. Ideal for everyday purchases like food, transport, and online shopping.
Mobile and Internet Banking
The most advanced form of digital banking—used to transfer funds, pay bills, top up credits, and more, all from a smartphone.
QRIS (QR Code Indonesian Standard)
A QR code payment system from Bank Indonesia, designed to promote financial inclusion and efficiency in the national payment system.
E-Commerce Payments
Transactions made through online stores or apps using cards or e-wallets.
Virtual Accounts
Unique account numbers issued by banks or payment gateways to facilitate real-time, trackable payments.
Bill & Tax Payment Apps
Apps that allow you to pay electricity, water, and vehicle tax bills online—no need to visit service centers.
Contactless Payments
Payments made by tapping a card or phone on an NFC-enabled device, often without entering a PIN (for small amounts).
With ease comes risk. To stay safe, here are critical things you should always be cautious about:
Beware of Phishing and Social Engineering
Don’t click on links from unexpected messages claiming to be from a bank or app. These could redirect you to fake login pages designed to steal your credentials.
Avoid Using Public Wi-Fi for Transactions
Public networks are vulnerable to Man-in-the-Middle attacks. Hackers can intercept your data and steal usernames, passwords, or OTPs.
Never Share OTPs or PINs
No legitimate service will ever ask you to share these. If someone does, it’s a scam.
Double-Check Before Confirming Transactions
Always verify the amount, recipient, and other transaction details before hitting confirm.
To protect digital transactions, strong user authentication is essential. VIDA, a certified digital identity provider, offers anti-phishing authentication via biometric and device-based technology:
VIDA PhoneToken
Device-based authentication using PKI. Only the verified device used during registration can authorize transactions, eliminating the risks of OTP theft via SIM swap or phishing.
VIDA FaceToken
Combines face liveness detection, face matching, and device authentication in one step. Even if your device is compromised, the transaction can’t be completed without your biometric data.
From a user perspective, authentication feels like taking a selfie before logging in or completing a transaction. Instead of typing in a PIN or waiting for an OTP, PhoneToken and FaceToken verify your face and device in real-time and instantly, in the background.
No need to remember passwords or wait for codes. Just open the app, show your face, and you're authenticated in seconds.
Digital transactions offer convenience and efficiency but also demand caution. With modern authentication solutions like those from VIDA, you can gain stronger protection for your accounts and digital transactions.