Go-Jek Strengthens Grip in Electronic Payments

JAKARTA (TheInsiderStories) – Indonesian ride-sharing company Go-Jek continues to strengthen its grip in the country’s electronic payment system by adding its new Go-Bills service, launched on Wednesday (22/11).

Nadiem Makarim, the company’s Chief Executive Officer, said Go-Bills is a platform that can be used for numerous bill payments, including electricity and the national healthcare insurance system (BPJS Health). The platform can be accessed through Go-Pay.

He said the new platform will expand the existing ecosystem in Go-Pay services in providing cashless payments, in line with government’s effort to promote a cashless society.

“We want to speed up the transition process of cash into cashless payments in society,” he said, adding that the system will aid the unbanked community.

Go-Bills currently teams up with state lender PT BNI Tbk to provide such services.

Launched in April 2016, Go-Pay grew fast. The company is currently preparing infrastructure, including applications for customers, that will make it easier for them to carry out transactions with various merchant partners using Go-Pay, and targets Go-Pay to fully operate independently from GoJek.

Go-Pay is currently trailed by e-Money, owned by the state-owned bank Mandiri, Flazz card of Bank Central Asia and T-Cash, owned by PT Telkomsel.

However, GoPay may have an advantage over these more traditional competitors, as it has a larger digital cash user base, for instance those paying taxi or bus fares.

GoJek currently is working with more than 300,000 driver-partners and 100,000 SMEs.

Being a cash-heavy society, both conventional banks and fintech startups have been struggling to popularize the use of mobile payments in Indonesia.

But recent developments have indicated that the mobile payment evolution, if it is ever to happen in Indonesia, will be led by ride-hailing startups instead of banks and fintech startups.

Go-Jek was established in 2010 as an on-demand transportation platform for motorbikes. However, Go-Jek’s portfolio of services has been broadly expanded since then to include grocery delivery, courier services, home cleaning, massages and food services.

With a population of more than 250 million, Indonesia is the world’s fourth-most-populous nation and the largest economy in Southeast Asia. Indonesia is eyeing e-commerce to become a market worth an estimated $130 billion by 2020 from a current $8 billion.

Written by Yosi Winosa, email : yosi.winosa@theinsiderstories.com