Three Indonesian digital fintech corporations are partnering with Facebook to hunt regulatory approval to launch mobile payments within the country, a financial watchdog official said.
The plan, if approved, could possibly be among the many first under the social media company’s Facebook Pay unified payments service, which the corporate unveiled in November. Users on various platforms, including WhatsApp and Instagram, could make payments without leaving the app.
Bank Indonesia deputy governor Filianingsih Hendarta, who heads policy for the payments system, told Reuters that three local corporations had asked the regulator for preliminary approval for a payments partnership with Facebook.
“So far, no one has submitted a formal application. Some of them just came to talk during the consultation meeting with Bank Indonesia,” Hendarta said.
She said the three e-wallet operators were Indonesian transportation company Gojek’s GoPay; financial technology startup OVO, owned by Indonesian conglomerate Lippo Group and likewise backed by Singaporean ride-hailing company Grab; and state-backed LinkAja.
Four sources with knowledge of the matter said Facebook is seeking to tap the Indonesian market and is preparing for regulatory approval within the country. In August, Reuters reported that Facebook-owned WhatsApp was in talks with these corporations to launch digital payment services in Indonesia.
A Facebook spokesperson said the corporate is attempting to make digital payments available in additional countries and believes that “digital payments… will open up extraordinary growth opportunities for corporations.” She added: “We are in talks with partners in Indonesia. However, discussions are ongoing and we have nothing further to share at this stage.”
OVO CEO Jason Thompson said: “As an open ecosystem platform, we are always looking for new partnerships to increase cashless transactions… including through Facebook.” Gojek declined to comment. LinkAja was not immediately available for comment.
Facebook desires to speed up its expansion in Southeast Asia. Home to 260 million people and the biggest economy within the region, Indonesia is considered one of the biggest Facebook and WhatsApp markets on the planet, with over 100 million users.
Facebook can be in separate talks on a partnership with Gojek, which incorporates Alphabet’s Google and Chinese e-commerce JD.com, two sources said.
“The talks could result in a strategic partnership, cooperation or investment,” said considered one of the people accustomed to the matter. The talks, which began before the outbreak of the coronavirus epidemic, are at an early stage.
Elsewhere in Asia, Facebook was in talks to purchase a multi-billion stake within the telecommunications unit of Indian conglomerate Reliance Industries, in accordance with media reports. Gojek declined to comment. Facebook referred Reuters to its overall statement.
Having evolved from a ride-hailing service founded in 2010 to an all-in-one app that gives online payments, food ordering and even massage services, Gojek is valued at $10 billion.
Source : Reuters
