Ayoconnect has raised pre-Series B funding US$5 million from BRI Ventures, the venture capital arm of PT Bank Rakyat Indonesia Tbk (IDX: BBRI), Tokyo Stock Exchange listed internet firm Kakaku.com, and Brama One Ventures - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian bill payment provider, Ayoconnect has raised pre-Series B funding US$5 million from BRI Ventures, the venture capital arm of PT Bank Rakyat Indonesia Tbk (IDX: BBRI), Tokyo Stock Exchange listed internet firm Kakaku.com, and Brama One Ventures. The startup wants to build Open Bill Network across the country.

Existing investors like global funds, Finch Capital and Amand Ventures, also participated in the round. Currently, the firm has raised over $10 million funds to connects billers with banks and other partners.

The company has processed more than 40 million payments through its 600 bill providers and 40 channel partner. The transaction volume has seen a 400 percent growth during January to June 2020.

Indonesia is expected to making gradual progress to reduce heavily cash-reliant, with card payments value set to increase from $44.5 billion in 2019 to $57.1 billion in 2023, according to the recent report of GlobalData. The reports said, that similar growth could be seen in the card payment volume as well, from 1.0 billion in 2019 to 1.4 billion in 2023.

The value of Indonesian card transactions is expected to see compound annual growth of 7.1 percent from 2019 to 2023, with the growth to be fuelled by the higher use of debit cards. In fact, debit card spending is likely to overtake credit cards in 2019, and will eventually make up half of all card transactions by value, the report said.

Lead banking and payments analyst Ravi Sharma noted that growth has been supported of late by government initiatives such as cash transaction limits and financial access in rural areas. For instance, Indonesia has rolled out a national payment gateway for a domestically inter-operable ecosystem and is in the process of moving all ATM and debit cards to the EMV chip standard with a mandatory six-digit PIN, to boost security measures.

He concludes improving payments infrastructure, lowering of card acceptance cost, improving payment security and convenience with the adoption of EMV and contactless technologies, and growth in the e-commerce market are all anticipated to support the Indonesian payment card market growth going forward.

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