Go-Jek announced that it will enhance its digital wallet presence in Indonesia through Go-Pay. The initiative is part of the company's efforts in helping the country shift from cash to virtual payments.
According to CNBC News, 99 percent of Indonesia's transactions are still cash-based and Go-Pay is looking to change this culture. Digital payments are popular in the country but there is still a huge need for transitioning to the virtual realm like other Asian and western countries.
Go-Pay CEO Aldi Haryopratomo told the outlet's Squawk Box Asia program that the firm will "strengthen and deepen" its position in the local market. "The real competition is how do we move people away from cash? Once you have people moving away from cash, there is so many things that you can do," he said.
Haryopratomo said Go-Jek's digital wallet is Indonesia's leading virtual payment service provider. Consumers who use the service are given the option to utilize their online credits for in-app purchases of various goods. The e-wallet can also be used for transactions with partner sellers and merchants.
Financial technology, better known as fintech, is also growing steadily in the Asian country. The latest Redseer report indicated that the e-wallet market, a segment under fintech, will expand to become the fastest-growing segment in the industry. Analysts predicted that the segment will grow to $25 billion in four years time.
Despite rising competition in the Indonesian market, Haryopratomo said Go-Pay is "excited" about the increasing number of rivals. For the company chief, more players mean more partners in helping the country transition towards innovative thinking.
Earlier this month, state-owned e-payment platform LinkAja launched into the growing digital economy in Indonesia. The service provider said it is prepared to compete with Go-Pay and its biggest rival, OVO. Danu Wicaksana, director of PT Finarya, the firm that owns LinkAja, said the e-wallet service is part of the government's initiative dubbed as the National Non-Cash Movement (GNNT).
Haryopratomo added that banks will surely start noticing Go-Pay as it grows domestically, especially since the e-wallet was produced by one of Indonesia's leading ride-hailing companies. "The way that we partner with them is, we find areas where we believe we become a bridge for the bank," he noted.
Go-Pay is not limiting itself to the Indonesian market. Haryopratomo said the firm will also expand to other Southeast Asian regions in the near future. While Go-Jek's supposed to expansion to the Philippines was blocked by local regulators, the company said it is optimistic about trying to penetrate the Filipino market again due to its acquisition of Coins.ph.
