Go-Jek CEO Nadiem Makarim revealed that in the following three to 6 months, users will have the ability to make use of the Go-Pay electronic payment service to make transactions on various online trading platforms. He is quoted while speaking during a panel discussion on the 2017 Global Mobile Internet Conference (GMIC) event in Serpong, Indonesia
As the corporate previously reported in July, it also revealed that Go-Pay will have the ability for use for transactions in restaurants belonging to the Go-Food chain, a food delivery service owned by Go-Jek.
It may also be possible to buy virtual goods on gaming platforms using Go-Pay, although he didn’t provide a selected schedule for a selected service.
“And hopefully, who knows, in the following six months Go-Pay might be accepted within the infrastructure [service] equivalent to toll roads, parking lots and others,” he said.
Go-Jek first launched Go-Pay in 2016. In one 12 months, the service secured between 16 and 18 million monthly lively users, with 50% of transactions on the Go-Jek platform conducted via Go-Pay.
Makarim also said Go-Pay users are inclined to transact three to 4 times greater than money users on the platform.
“Go-Jek offers so many different services, and a cashless payment system would greatly improve all of these services,” he explained.
“The reason for founding Go-Pay had nothing to do with creating an e-payment system or the business of creating a payment system. The first and most important reason was to create a user experience that was much better than paying with cash,” he continued.
World Bank data shows that only 36% of Indonesians over the age of 15 have access to financial services equivalent to bank accounts (2014).
Despite the efforts of banks, telecommunications firms and fintech start-ups to bring e-payment services to the general public, bank transfer and money remain popular payment methods even for e-commerce transactions.
As for the challenges an organization faces when introducing an electronic payment service in a cash-heavy society, Makarim cited behavioral change as an important issue.
“There are always huge challenges in getting someone to change their behavior. Getting people to adopt Go-Pay wasn’t too difficult… I think the challenge will be the next wave of Go-Pay adoption as an electronic payment service not only in the online space but also offline,” he said.
There are also other challenges equivalent to security, social engineering, liquidity and the know-your-customer (KYC) process.
“It’s a matter of adoption. However, I believe we are about a year away from e-wallet becoming ubiquitous in Indonesia because Indonesia has this ability to leapfrog faster than other countries,” he added.
So what do fintech firms have to find out about user conversion in Indonesia?
“Adoption is just not rocket science. People within the tech world would say a whole lot of big words about adoption… but it surely’s actually not rocket science. The secret is to seek out significant improvements in convenience, speed or cost for individuals who do not have a checking account and what they do of their day by day lives,” Makarim replied.
“Therefore, the only way to reach people without a bank account and persuade them to use electronic payments is to become involved in their everyday lives,” he concluded.
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This article was published in “E27co” titled “Indonesia One Year Away From E-Wallets Arrival Globally: Go-Jek CEO” written by Anisa Menur Maulani
