The banking system in Indonesia is predominantly conventional, not syariah. Credit card penetration is low but its more to do with credit risk than religious re

The banking system in Indonesia is predominantly conventional, not syariah. Credit card penetration is low but its more to do with credit risk than religious reasons. They operate as they do elsewhere. The digital wallets are stored value. So kind of like a very limited bank account. Without registering your ID you can put money in there and purchase things online or at point of sales. With extra KYC (Your ID etc) you can store more money in there and transfer it to friends. But the limits are small (<$300) even for the KYCd accounts. The digital wallets themselves though are in general part of large "super" apps, kind of like uber + supermarket delivery + parcel delivery and a whole host of other services. Big players include Gojek & Grab, which started as ride-hailing. The cashback is to attract new users, its pretty rare nowdays though as the wallets tighten their belts. You used to get cashback at point of sale, but it was never a huge amount (typically $2-3). The general idea was to use cashback to encourage daily usage, gradually weaning people off them as they started to become dependant on the other services I mentioned.