JAKARTA (TheInsiderStories) – PT Visionet International or known brand as OVO, led the digital payment transaction during first half of 2019, based on the Bank Indonesia latest report. The arms of Grab Indonesia and local tycoon Lippo Group acquired 37 percent market share, while the main competitor GoPay holds 17 percent of the total national market.
The data shown the total digital payment transaction value for that period was about US$4 billion. The OVO’ transaction recorded $1.49 billion and GoPay $680 million. The other players, Dana and LinkAja contributed 10 percent and 3 percent, respectively.
The rest of it derived by e-money owned by banks like PT Mandiri Tbk (IDX:BMRI) and PT Bank Central Asia Tbk (IDX:BBCA). In a recent study, Snapcart also claimed that Ovo is the top e-wallet app in Indonesia.
The survey revealed that 58 percent of respondents like to using OVO as their favorite digital payment application. Other application-based digital wallets, namely GoPay 23 percent, DANA 6 percent, and LinkAja percent. The remaining digital walet like by 12 percent of respondents namely Flazz, Brizzi, and Mandiri e-Money.
For the retail transaction segment, OVO is used by 63 percent of respondents and Go-Pay by 28 percent of respondents, followed by DANA by 7 percent and LinkAja 1 percent.
At present, OVO has been accepted at around 500,000 merchants. While Go-Pay mentions the number of 300,000 merchants. LinkAja has also recently provided 130,000 merchants and FUNDS can be accepted at more than 13,000 merchants.
In the online food transportation and shipping order transaction segment, Snapcart’ research data also shows that OVO’ position as a digital wallet for GrabCar and GrabBike and GrabFood services shows that 71 percent of respondents use OVO. While 29 percent of respondents choose to use Go-Pay for transactions on Go-Jek and Go-Food.
Previously, Singapore’ Grab Holding had a premilinary talked with local firm, PT Elang Mahkota Teknologi (IDX: EMTK) also known EMTEK to acquire its digital payment arm Dompet Digital Indonesia (DANA). It said, a deal would see Grab buy a majority interest in DANA.
The Japan’ Softbank Group-backed firm plans to merge OVO, an Indonesian digital payments with Chinese’ Ant Financial (Alipay)-backed local peer to build heft and power ahead of arch rival GoJeK. OVO and GoPaY have been vying for the top spot in payments since 2018, with DANA not far behind.
Grab and GoJek are the top-two startup brands in Southeast Asia, valued at $14 billion and $10 billion, respectively. They compete in a host of areas including financial services, e-commerce, ride-hailing and food delivery.
The plan also points to intensifying competition in Indonesia’ digital payments industry that is seeking to piggyback on the country’ booming e-commerce market and its 260 million people.
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