Anfin, a Vietnam-based stock trading app for retail investors, has raised US$510,000 from Global Founders Capital (GFC), First Check Ventures, and R2 Venture Partners.

GFC is a Germany-headquartered billion-dollar fund and an early investor of notable tech companies, such as Facebook, Rocket Internet, and Archer Aviation, LinkedIn, Lazada, and Slack.

“GFC is always looking for outstanding founders globally to provide them with capital. Our current focus is in Vietnam and Southeast Asia that is home to a large pool of talent,” said Jay Lim, VC management partner at Global Founders Capital. “I believe they [Anfin] are active as a key player in improving financial literacy in Vietnam.”

We have contacted Anfin for more details about the funds and will update this article when we hear from it.

Also read: Pocket power: 27 personal finance startups in SEA to help you manage money

Founded in June 2021 by CEO Phuoc Tran and CPO Michael Do, Anfin is a stock investment app that enables users to buy and sell stocks with small capital starting at only VND50,000 (around US$2) and allows trading of fractional shares.

Anfin aims to simplify the financial investment process through a user friendly, transparent and highly secured platform, generating passive income for young Vietnamese.

The startup also supports users’ decision-making by providing investment knowledge, from basic to advanced, and updating financial news in an easy-to-understand style.

“The complicated process, risk aversion and large initial capital are common barriers that hinder Vietnamese people from investing in securities,” said Anfin CEO Phuoc Tran. “We strive to inspire and support Vietnamese people, especially the young, to help them confidently start investing to achieve their financial goals.”

In H1 2021, the total number of new domestic investor accounts opened in Vietnam increased by 58 per cent compared to the whole of 2020. Around three per cent of Vietnam’s 100 million population has a stock brokerage account, according to investment firm VinaCapital.

The year 2021 has witnessed a massive growth of people joining the stock market, while the traditional investment options like real estate and gold have become less excited, reports VinaCapital.

Vietnam’s government aims to increase the country’s stock brokerage penetration rate to 5 per cent by 2025 and 10 per cent by 2030.

In Southeast Asia, investment platforms are ripe for an explosion, with Aijab becoming the latest unicorn in this sector. In Vietnam, Finhay and Infina are the two notable startups that recently secured funding.

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Also read: Anfin

 

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Farmacare, which helps community pharmacies in Indonesia be more competitive and provide better services for their neighbourhood, has secured an undisclosed amount in seed funding.

Led by Beenext, the round also saw participation from Taurus Ventures, iSeed SEA, Indonesia Women Empowerment Fund, and unnamed angels.

“We are excited to announce the closing of seed investment in Farmacare, led by BEENEXT with Taurus Ventures, iSeed SEA, IWEF (Indonesia Women Empowerment Fund, a fund operated by Moonshot Ventures and YCAB Ventures), and angels,” founder Adi Sudewa said in a LinkedIn post.

“We are growing by leaps and bounds, but still early in our dream to create positive impacts for community pharmacies, distributors, and millions of Indonesians who need much better access to medicines and other pharmaceutical products,” he added.

Also Read: Pharma entrepreneur Thomas Miklavec shares his journey on expanding his startup across SEA

Founded in 2020, Farmacare offers a cloud-based pharmacy business management solution. It assists pharmacies in the archipelago with the daily administrative workflow management, thus increasing the efficiency and potential of their businesses.

Its solution boasts of features such as sales record management, inventory tracking, and CRM. Pharmacies can monitor their business performance from anywhere, anytime. They can also see daily sales per employee, check purchase invoices, monitor stock of goods, and monitor multiple pharmacies using a single app.

Farmacare also helps prevent potential losses that usually occur in pharmacies, such as fraud due to unrecorded sales and purchases; items lost, expired, or dead stock; and empty goods and rejected customers.

Subscriptions are available at IDR 149,000 (US$10.5) a month for the three-month package or US$136,000 (US$9.6) a month for the one-year package.

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Image Credit: Farmacare

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RareJob, an online ESL (English as a second language) school, has signed a capital alliance agreement with Dream Viet Education (DVE), the operator of “Kynaforkids”, a Vietnamese online English tutoring service.

As per a press statement, DVE marks RareJob’s maiden investment into Vietnam’s edutech market. The partnership looks to leverage the existing assets of the two firms.

Under the investment, RareJob aims to utilise its network of approximately 6,000 available Filipino tutors on “RareJob Eikaiwa”, an online English conversation lesson service, to provide high-quality lessons to DVE’s students.

The Japanese firm stated that this collaboration aligns with its intention to expand globally. It has been strengthening business targeting corporations and educational entities and is expanding to global leader developments and career-related businesses through synergies.

Also read: Edutech is surging, but here are the 3 issues it is facing

Founded in 2013, Dream Viet Education provides online English tutoring platforms, including Kyna.vn and Kynaforkids. 

During the COVID19 pandemic, DVE claims to have seen robust growth both domestically and internationally in its online English tuition service under the Kyna English 1-1 brand. The company also said it has secured a steadily growing number of users.

RareJob and DVE also intend to strengthen collaborations for DVE’s existing services for adults and kids through leveraging RareJob’s PROGOS, an AI business English-speaking test, and RareJob Eikaiwa materials.

Previously, RareJob made inroads into other markets through strategic investments in local edutech startups, such as Thai online English teaching company Globish Academia Company and Indian online English tuition company Multibhashi Solutions.

According to “Vietnam IT Landscape 2020” research, the amount of investment for the Vietnamese edutech industry market reached US$20.2 million. As of 2019, the total amount of foreign investment capital for edutech has reached US$55 million in Vietnam.

 

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A few days ago, Kia announced that their electric vehicle sales exceeded 10,000 units just in September 2021. Hyundai also reported over 16,000 units of the plug-in electric vehicles sold in the same month.

In 2020, in a year where the pandemic halted almost all industries and when overall car sales globally dropped by 16 per cent, electric car registrations rose by a whopping 41 per cent. And that’s just passenger vehicles; it doesn’t include three-wheelers and electric motorbikes.

In a world at dire risk of missing its climate targets, electric vehicles seem like the carbon-mitigation technology with the best potential to scale commercially, capturing both the world’s imagination and its wallets. 

But are electric vehicles really more climate-friendly?

For Sohail Hasnie, Principal Energy Specialist at the Asian Development Bank, the answer is yes. 

He posed the comparison between a fuel-run vehicle versus an electric vehicle travelling 100 kilometres. “If you want to do 100 kilometres on the Toyota Corolla, you need about eight litres of petrol. And that eight litres of petrol when you burn it, it will produce about 18 kilograms of carbon dioxide,” Hasnie said.

Whereas, at the same distance travelled, an electric vehicle requires about 20 kilowatts of electricity, emitting 9 kilograms of carbon dioxide-based on today’s electricity generation source.

“So, 18 kilograms of carbon dioxide versus nine kilograms for the same distance. It’s phenomenal,” Hasnie added.

And it’s not just in the actual vehicle itself that electric vehicles get more climate-friendly. Wavemaker Partners-funded Summit Nanotech, for example, are exploring greener, faster, and more affordable ways of extracting lithium, which the industry will need as it scales. Then there is The Flow, a company that is working on flow batteries that can easily be used in existing service stations to alleviate some energy source pain points electric vehicle owners may encounter.

With these possibilities of more efficient yet greener batteries and energy grids comes the greater possibility of converting commercial fleets to electric. 

“We’re interested in how you’re going to charge those fleets, but also how are you going to route those fleets to the city, how are you going to maintain the batteries over time and how are you going to resell those cars, long term,” says Doug Parker, an automotive startup founder turned investor at Wavemaker Partners.

This is precisely what Euler Motors is working on. According to their founder, Saurav Kumar, Eular Motors was started with the aim of helping combat climate change by decreasing air pollution

“If you look at the segments that commit or give you a lot of air pollution, it’s the commercial vehicles, then the two-wheelers, small two-wheelers, and then you have obviously four-wheelers in it,” Kumar said. “But they [the other three segments] do not contribute as much as these commercial vehicles.”

And while it is early days yet for Euler Motors, interest in the product is promising. Just in the previous month, they have received orders for 2,500 units of their three-wheeler electric vehicle from various e-commerce and grocery stores in India.

There is growing, tangible support for the shift to electric vehicles

It took less than five years from when the Nissan LEAF came out to reach the one million electric vehicle units running mark, significantly taking less and less time for every million. Now, we are at ten million electric vehicles running globally. 

This is widely because of the increased awareness of the environmental benefits of electric vehicles, as well as better technology that creates better vehicles.

A huge cause for the adoption, though, can be attributed to two things: the Paris Climate Change Accord, and the United Nations Sustainable Development Goals.

With the government-level commitment to these two international agreements, there is assured support for the move that even traditional industries are in on it, with a lot of large corporations announcing plans to aim for Net Zero carbon emissions.

The time is ripe for electric vehicles to flourish

Government support and company commitments to Net Zero make it all the more possible for the electric vehicle industry to grow.

The role of startups in this shift is crucial: as technology gets better and the transition of energy sources from fossil fuels to alternative sources get faster, startups have the advantage of being able to move at the same pace.

Paired with an ecosystem that is coming together — from cleaner energy sources, better energy storage, manufacturing of vehicles, and public and private companies’ transition to more sustainable transport systems — electric vehicles may soon become the norm for a region that aims to save the planet.

The Climatic Series Episode 2

In this episode of the Climatic Series, we take a look at how electric vehicles are changing the vehicle manufacturing industries’ perspective especially in light of climate issues, and meet startups, investors, and other stakeholders who are working on building a sustainable ecosystem across the region to help scale the reach and impact of electric vehicles.

Watch the Talkshow here. Open call application here.

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This article is produced by the e27 team, sponsored by ADB Ventures

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Newsflash. You don’t need to be a millionaire to be an impact investor. There are all kinds of ways of investing your money today. You can invest in cryptos, buy NFTs, and you can, of course, invest in stocks. Still, in my experience, there is nothing like backing a company at the seed stage– especially when the company’s mission is to solve the world’s biggest challenges like clean water or clean air.

If you want to start angel impact investing, meaning backing companies that are solving today’s biggest challenges, you have so much choice today.

Following the journey of people who share your values and who have made it their mission to build a company from scratch is exciting and rewarding, and at the seed stage, you can make a difference with your capital.

Whether you want to back companies creating meat with almost no carbon footprint, capturing CO2 from the air, creating circular economy technologies or bringing affordable healthcare to the masses, you can become part of a new paradigm of ethical investing with as little as US$10,000.

When I was working for Techstars, one of the best technology accelerators in the world, I  would overhear conversations between angel investors. As a consequence, I made three assumptions that were proven wrong in the last year:

• I assumed that all investors were millionaires. I felt intimidated, assuming angel investing was something for the elite that I wouldn’t be able to do before becoming a millionaire myself. 
• I assumed I needed to know everything about business before becoming an investor, but all I needed was to develop expertise and a network in a sector I’m passionate about. 
• I also thought that it wasn’t possible to make money in ways aligned with my values of striving towards sustainability and equality.
• I held on to the outdated assumption that making money and doing good in the world were mutually exclusive.  

Also Read: COVID-19, the environment, and the tech ecosystem: what opportunity is available out there for us?

You can invest US$10K as opposed to US$25K in a startup

Typically, the smallest ticket size for an angel investor is US$25,000, but you can also back companies with US$10,000 or US$5,000 if you have something unique to bring to the table.

Ideally, you will want to build a portfolio of about 20 companies over five years, that’s four investments a year, a total of US$40,000 a year. This is so that you spread your risk and probability of returns. 

If you’re wondering how to make this happen, you can reach out to accelerator programmes like Antler, Entrepreneur First or Techstars. You can also join networks of investors like Top Tier Impact (where I work), so you get access to quality deal flow.

There are also numerous events where startups pitch. You communicate how much you want to invest. Agree on the terms of the investment and done!

Returns happen where the business you invested in either gets acquired or goes public. It’s usually a five-to-eight-year timeline, so in that sense, you need a long-term investment perspective.

The idea is to follow on on investments that are doing well in subsequent rounds.  

My point here is that you can invest US$10,000 in a good business, and they will happily receive it, provided you bring something unique to the table; a good value proposition to founders, sector expertise or a relevant network.

It’s also okay to start with more minor tickets and do a more significant number of deals.

Also Read: Why is impact investing suddenly so hot?

You don’t need to be an expert in all sectors. Just pick one focus

So what do you bring to the table? You don’t need to be an expert in everything. For some angel investors, it’s money only. For others, it’s their time or the introductions they can facilitate.  

• Your network of potential advisors and investors is of vital interest to founders,  and it can be formal or informal. I run an angel investor club called Stage 6, which opens the door to investment opportunities and gets investors to back companies on advantageous terms. 
• Exposure and expertise: My friend Berenice Magitretti is both a journalist and an angel investor in femtech. She brings in money as well as sector-specific expertise. 
• Localised knowledge and market trends: I have focused most of my angel investing on alternative protein because it made sense for me being based in Singapore, which is becoming one of the best ecosystems in the world for food technology.  

Value alignment and adding value with your capital

In the last year, I have made three angel investments ranging between US$10 and US$25,000, two in funds and one in a startup. If you focus on one subsector, you will build expertise, and your due diligence will become easier and easier as you start to become knowledgeable.

So if you want to hack angel investing, think about the following: What can I  bring to the table that would make my check ultra-valuable? 

By focusing on alternatives to animal protein such as plant-based, cell-based and fermentation technologies, I am backing alternatives to the broken industrial agriculture system.

Investing as an angel impact investor is making a difference because that is the hardest capital to raise.

Also read: A wave of change: What sets impact investing apart from traditional investing

If you want to make a difference with your money, invest in companies pre-IPO that are tackling the world’s biggest challenges. Once a  company is public and you buy shares, there is a lot of capital available.  

Once you have started, you will quickly see that the real challenge is finding good companies to back, and you achieve that by building trusted relationships.  

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It’s no secret that the pandemic has spurred a dramatic increase in digital usage around the world. According to a report by Bain, 40 million people came online for the first time last year in Southeast Asia alone. 

As a result, heaps of data is being generated every day. While this presents a massive opportunity for businesses to drive more swift and informed decisions, it also increases their vulnerability to cyberattacks and compromised privacy.

A report by Imperva found that more data was stolen in just January 2021 than in all of 2017. 

This is alarming, especially as the business community’s reliance on data which is now being touted as the new currency, continues to increase.

It also means that to retain consumer trust and competitive edge in the long run, companies need to take significant steps to ensure that they collect, manage and safeguard data correctly. 

Develop a system of checks and balances

Many of us still remember the Cambridge Analytica scandal in 2018, when the company used a loophole in Facebook’s API and created a third-party app to extract sensitive data of some 87 million users nonconsensually. 

Not only did this start a furore around privacy rights on social media, but it also taught businesses some important lessons. For instance, organisations dealing with large mines of data must ensure they have a system of checks and balances in place.

This is now starting to happen across the board as key industry players, including Google and Apple, are taking significant steps to prioritise user safety. 

Also read: Blockchain is the future of data privacy

At Meltwater, for instance, our team focuses on compliance to social media platforms’ use of rights policy, and we are extremely sensitive to GDPR.

We also have an advisory board, which includes industry veterans, to guide us on how the industry is evolving to ensure we’re always on top of things regarding the ethical use of data. 

Invest in security 

Singapore witnessed its largest-ever data breach in 2018 when personal details of 1.5 million patients from SingHealth’s specialist outpatient clinics were stolen because their IT agency lacked adequate awareness, resources, and training to respond correctly to the cyberattack.

As our world continues to become more digitally connected, IBM found that three in four organisations worry that remote work would make it more difficult for them to respond to potential data breaches.

Businesses need to invest in security software and infrastructure to protect their systems from such vulnerabilities. 

Be transparent with your customers

Last year, a McKinsey survey revealed that consumers’ trust in data collection and privacy practices varies across industries but is low overall. Given this, it’s not surprising that many want to restrict what they share with businesses. 

For businesses, the solution is to take a proactive approach rather than a reactive one. This includes explicitly informing and seeking consent for the data you’re collecting and always ensuring adherence to local and national laws concerning data collection and protection.

Finally, in the event of any data breach, be transparent with your customers and communicate how you intend to protect them moving forward. 

As we move towards a cookieless world, first-party data is becoming increasingly important for marketers. There’s no avoiding this in the digital era, as it will inherently become a part of every businesses’ core strategy.

The solution is for organisations to develop responsible practices and behaviour to ensure that data privacy continues to go hand-in-hand with profitability.

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Grab expands initiative to bring SMEs online

The crux: Grab Financial Group (GFG) has announced the expansion of its ‘Grow with Grab’ suite of products and features to empower small and medium enterprises (SMEs) across Southeast Asia.

With this, the financial arm of Southeast Asia’s tech unicorn aims to tap on the regional e-commerce market opportunity that is expected to reach US$172 billion in 2025.

As per a press note, this is in line with GFG’s move to be more merchant-centric in its offerings and support its merchants’ business growth across the region.

Expanding GrabMerchant Commerce

In May, Grab Financial Group launched webstore builder platform GrabMerchant Commerce to boost sales and reduce operational work and payment risks. Since the pilot programme’s launch in Singapore, over 500 merchants in the apparel, furniture, F&B and artisanal products categories have signed up. GFG says these firms averaged a 6x increase in sales from when they first started their online businesses, with 83 per cent of them activating GrabPay.

Also Read: Abu Dhabi wealth fund to inject US$400M into GoTo’s pre-IPO round

More than just a webstore builder, the GrabMerchant Commerce platform enables small businesses to scale by offering tailored support in areas such as marketing and brand development, as well as advanced operations such as automation, CRM, inventory, and logistics.

With the pilot programme’s success, GrabMerchant Commerce will be scaled up, with more opportunities for merchant-partners to generate sales. By October-end, selected GrabMerchant Commerce merchant-partners can be accessed via the ‘Shopping’ icon in the Grab app, exposing them to millions of Grab users across Southeast Asia.

GrabMerchant Commerce will be rolled out in Malaysia and the Philippines in 2022.

India’s ID verification startup IDfy raises US$11.5M

The crux: IDfy, India-based ID verification and onboarding solutions company, has raised an investment of INR 86 crore (US$11.5 million) in its Series D round of funding.

Lead investors: TransUnion and Blume Ventures.

Plans: IDfy plans to use this funding to strengthen its product offerings and expand the business and operations.

Also Read: Vida attracts funding to provide digital signatures, identity authentication services to Indonesian MSMEs

More about IDfy: Run by Mumbai-based Baldor Technologies, IDfy builds technology products and solutions that accurately authenticate entities. This helps businesses prevent fraud and engage with verified entities with the least amount of friction.

During the last six months, IDfy claims to have helped companies in Southeast Asia and the Middle East onboard verified merchants and customers in sectors such as payments, e-commerce, and mobility.

IDfy says it has performed more than 70 million verifications for 500-plus clients.

Zilliqa names Ben Livshits as new CEO

The crux: Blockchain platform Zilliqa has appointed software tech industry leader Dr. Ben Livshits as its new CEO, effective 11 October 2021.

In this role, Dr. Livshits will be driving Zilliqa’s global strategy, growing its footprint within the crypto space and increasing the market penetration from East to West, as new markets across the world establish themselves as crypto-friendly economies.

He also plans to establish initiatives that expand the capabilities of blockchains to new areas of finance, such as the DeFi sector, digital content creation and distribution, and new ways to connect Zilliqa to real-world applications such as high-value NFTs.

Also Read: Zilliqa launches US$5M fund to back startups building on its blockchain platform

Who is Livshits?: Throughout his career, Dr. Livshits has spent over two decades at tech giants such as Microsoft and Netscape. Before joining Zilliqa, Dr. Livshits served as Chief Scientist at Brave, the company behind the Brave browser. He built and led the company’s research division from the ground up, leading a multidisciplinary team across the globe to help create the world’s first practical privacy-preserving ad targeting and delivery system as well as a number of other technologies based on cryptography and machine learning.

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SAMO Holding, the company behind Vietnam’s financial comparison platform thebank.vn, has secured US$5 million in a Series A round led by UOB Venture Management, the investment arm of Singapore’s United Overseas Bank (UOB).

The development was first reported by Deal Street Asia.

SAMO, which also owns financial advisors platform momi.vn and insurance distribution firm TheBank Assurance, plans to use the latest fundings to expand its business in the country. 

The firm will also broaden its agent network and offer more extensive financial products covering loans, wealth management, insurance and loans.

e27 has contacted SAMO for more details. We will update this piece as and when we hear from the company.  

SAMO was established in 2014 by CEO Dat Thanh Nguyen. Its first product thebank.vn is a free financial advisor website that compares insurance, credit cards, loans, and savings options for consumers. 

The company said that thebank.vn processes more than 1.316 financial products, from house and car loans to travel and health insurance packages. 

It also claims to have clocked more than 2.6 million visits per month and more than 3.1 million advisor requests.

SAMO previously raised an undisclosed sum in pre-Series A funding led by Japan’s CyberAgent and South Korea’s NCore Ventures.

Since 2019, UOB has actively rolled out its fintech accelerator programmes The FinLab, in Singapore, Malaysia and Thailand. 

In Vietnam, the UOB fund has supported more than US$2 billion in investment into the country and created 17,000 jobs, as noted on the firm’s website.

Vietnam Fintech Report 2020 reported that Vietnam’s fintech startups recorded a 173 per cent growth rate within three years. Payments, P2P lending, blockchain, wealth management and POS services are the five most thriving fintech sectors.

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Also read: SAMO Holding

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Indonesia’s most prominent tech group GoTo Group is set to receive US$400 million from a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) in its pre-IPO round.

It will be the first principal investment by ADIA subsidiary Private Equities Department (PED) into a technology business in Southeast Asia and its largest investment in the archipelago to date.

ADIA will be the lead investor in this round and joins a global list of prominent GoTo investors, including Alibaba Group, Astra International, Facebook, Global Digital Niaga, Google, KKR, Sequoia India, and PayPal, SoftBank Vision Fund, Telkomsel, Temasek, Tencent and Warburg Pincus.

Also Read: Gojek, Tokopedia confirm merger with the launch of GoTo Group

In August, Reuters reported citing sources that GoTo was set to close an up to US$2 billion pre-IPO funding round in a few weeks. Various reports suggested GoTo plans to list in Indonesia by the end of 2021 before proceeding with a US listing with a potential valuation of $40 billion.

Hamad Shahwan Al Dhaheri, Executive Director of the Private Equities Department at ADIA, said: “This investment in GoTo is aligned with a number of our key investment themes, including the growth of the digital economy in the fast-growing markets of Southeast Asia. We see strong potential in the region, particularly in Indonesia, where the vibrant economic backdrop encourages ADIA to deepen its presence.”

Also Read: 5 lessons from GoTo and Traveloka on building the future of fintech in SEA

GoTo was formed through the merger of Gojek and Tokopedia in May. It is the largest digital ecosystem in Indonesia, whose services span on-demand transport, e-commerce, food and grocery delivery, logistics and fulfilment, and financial services.

The group claims it generated over 1.8 billion transactions in 2020, with a total group gross transaction value of over US$22 billion.

Established in 1976, ADIA is a globally diversified investment institution that prudently invests funds on behalf of the government of Abu Dhabi through a strategy focused on long-term value creation. ADIA has invested in private equity since 1989 and has built a significant internal team of specialists with experience across asset products, geographies and sectors.

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Image Credit: GoTo

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Suppose you see the words “Southeast Asia” in connection with e-commerce. In that case, you probably think of Singapore’s savvy online shoppers or the Filipino e-commerce boom that’s making Manila one of the world’s digital hubs.

And for sure, these markets are exciting, essential and will continue to attract investment for a long time to come. But one country is often left off the list of the region’s digital powerhouses: Indonesia.

And that omission is likely to prove an expensive one for companies who do not capture the opportunities this rapidly expanding market has to offer.

Indonesia’s e-commerce is a growing market

In 2020 alone, Indonesia’s digital economy grew by 11 per cent to a value of US$44 billion. And the digital economy already contributes four per cent to their national GDP. This will come as no surprise to seasoned observers of Indonesia’s digital economy, and particularly its payment sector, which is both thriving and innovative.

In May 2021, ride-hailing and payments giant Gojek and marketplace Tokopedia, Indonesia’s two most prominent startups, merged to form settlements and e-commerce giant GoTo.

With more than 100 million active users, the new group is opening up Indonesian and Southeast Asian e-commerce to new users, demographics and markets.

Also Read: Europe is still in the shadow from an Asian startup point of view: Ubisoft’s Catherine Seys

Indonesia’s preferred ways to pay

It would be a mistake to believe that GoTo, or its payments arm GoPay, are the only kids on the block.  There are almost 150 million Indonesians with internet connections.

This massive online population uses e-wallets and a wide range of bank-transfer apps (contributing to almost 30 per cent of online transactions) and a range of other local payment methods (seven per cent). Indonesians even use cash in around 13 per cent of online purchases.

One of the modern Indonesian payment methods is the local bank transfer app Jenius, with 3.3 million active users, up from 1.6 million just two years ago.

Similarly, Indonesian e-wallet LinkAja recorded a 65 per cent increase in the rate of new-user sign-ups in 2020. During that time, it quadrupled its transaction volumes and grew its revenue by 250 per cent.

Even the Indonesian credit card market has a local twist. Used in just 34 per cent of online transactions, cards are mainly issued by global giants such as Visa and Mastercard.

But the cards used in 13 per cent of transactions are issued by local schemes. This is a substantial chunk of the market which merchants entering the Indonesian e-commerce sector would miss if they only supported the standard payment methods for developed markets.

So, what should merchants, and the service providers who support them, do to prepare themselves for a successful entry into Indonesia’s booming e-commerce and online payments markets? The key is, as ever, localisation.

Also Read: Capturing the next frontier opportunities in the Indonesian e-commerce landscape

Traversing a dynamic e-commerce landscape

The most apparent way merchants and others entering the Indonesian market need to adapt is by optimising mobile.

According to the International Telecoms Union (ITU), just four per cent of Indonesians have a fixed-broadband subscription, while 89 per cent have a mobile-broadband subscription.

And almost 100 per cent of the adult population has a smartphone, while just 19 per cent has a tablet computer.

Language is also an essential aspect of localisation for Indonesians. Over 90 per cent of the population speak and read Indonesian. The most commonly spoken language is Javanese, spoken by almost a third of the country’s inhabitants.

It may be worth noting that the English Proficiency Index, which ranks countries by the proportion of their citizens who speak and read fluent English, puts Indonesia at 74 out of 100.

Probably the most critical requirement, however, is to localise payment methods. Only 29 per cent of all online transactions in Indonesia are paid using globally recognised credit cards. And even this may be an overestimate.

With smartphones now ubiquitous and the uptake of e-wallets, bank-transfer apps and other local payment methods (LPMs) surging, the Indonesian payment market seems set to diversify rapidly.

Also Read: The 27 Indonesian startups that have taken the ecosystem to next level this year

To win in such a fast-evolving environment, merchants and payment service providers (PSPs) must work with a partner that understands local payment culture, preferences and e-commerce conditions.

That’s where PPRO can help. Our local payments infrastructure gives PSPs fast, compliant and seamless access to Southeast Asian local payment methods. All in one place.

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