Payment Solutions for Digitizing Cash Flows

Mobile payment

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Payment Solutions for Digitizing Cash Flows
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Develop digital platforms (P2P / P2B / B2B) offering convenient payments and financial services, along with access to secure payments, transfers, cash-in/out, rewards, asset management, and investments, reward points based incentive.

E-wallet based payment solutions can be offered to serve low-income population by offering affordable cross border remittance solutions for immigrants, and business value chains by offering P2B and B2B payment solutions. Examples of some companies active in this space are:

PT Visionet Internasional, founded in 2017, offers OVO, an e-wallet which allows users and businesses to make and collect payments (38% market share). In 2021, Grab Holdings Inc. acquired stake from Lippo Group and PT Tokopedia to expand its ownership in OVO to ~90%. (17) In 2019, it was valued at USD 2.9 bn, making Grab's purchase worth USD 500 mn to USD 1 bn. (18 and 19)

GoPay was founded in 2010 as an e-money wallet for Gojek services. With >1 mn users, it helps in facilitating transactions to enable Gojek create millions of jobs for its service providers (motorcycle drivers, food stall owners and the like). In 2020, Facebook and PayPal invested in Gojek, resulting in their 2.4% and 0.6% stake, respectively, in Gojek’s GoPay fintech arm. (20)

Expected Impact

Easy money transfers by low-income groups, retail customers and businesses beyond urban areas, ensuring better transparency of transactions

Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Reduced Inequalities (SDG 10) Gender Equality (SDG 5)
Sector Sources
  • (1) OJK. 2020. BAGAIMANA UMKM & PERBANKAN DAPAT SUKSES DI ERA DISRUPSI EKONOMI & DIGITAL. https://www.ojk.go.id/id/data-dan-statistik/research/prosiding/Documents/Kajian%20Bagaimana%20UMKM%20dan%20Perbankan%20Dapat%20Sukses%20di%20Era%20Disrupsi%20Ekonomi%20dan%20Digital.pdf (2) SOFIA-Oxford Policy Management Ltd. 2017. Understanding people's use of financial services in Indonesia. https://www.bappenas.go.id/files/e2017943-e9b8-4452-ae8a-5f7c86b4a814/download (3) OJK. 2021. THE INDONESIAN FINANCIAL SERVICES SECTOR MASTER PLAN 2021-2025. https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Pages/Master-Plan-Sektor-Jasa-Keuangan-Indonesia-2021-2025.aspx (4) Bamboo Capital Partner. 2020. Amartha – Bridging the financing gap for women entrepreneurs in Indonesia. https://bamboocp.com/amartha-bridging-the-financing-gap-for-women-entrepreneurs-in-indonesia/ (5) WOMEN'S WORLD BANKING. 2019. Indonesia. https://www.womensworldbanking.org/country-strategies-indonesia/#keytrends (6) OJK. 2020. Supporting Financial Inclusion for MSMEs through FinTech. for https://ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Financial-Inclusion-for-MSMEs-Through-Fintech/OJK%20Publication%20-Financial%20Inclusion%20for%20MSMEs%20through%20Fintech.pdf (7) Ayman Falak Medina. 2021. Opportunities in Indonesia’s Financial Technology Sector. https://www.aseanbriefing.com/news/opportunities-in-indonesias-financial-technology-sector/ (8) J-PAL. 2020. Towards Inclusive Digital Finance in Indonesia (Inclusive Financial Innovation Initiative Whitepaper). https://www.povertyactionlab.org/review-paper/towards-inclusive-digital-finance-indonesia-inclusive-financial-innovation-initiative (9) PRAKARSA Policy Brief. 2020. The Risk of Over-indebtedness Amid COVID-19 Pandemic. https://responsibank.id/media/496087/policy-brief-23-eng-the-risk-of-over-indebtedness-amid-covid-19-pandemic.pdf (10) Liputan6. 2021. 51 Persen Penduduk Dewasa Indonesia Masih Belum Punya Rekening Bank. https://www.liputan6.com/bisnis/read/4502172/51-persen-penduduk-dewasa-indonesia-masih-belum-punya-rekening-bank (11) Ciptarianto, A. 2022. E-wallet application penetration for financial inclusion in Indonesia. International Journal of Current Science Research and Review. https://doi.org/10.47191/ijcsrr/v5-i2-03. (12) Bank Indonesia. 2020. INDONESIA PAYMENT SYSTEMS BLUEPRINT 2025. https://www.bi.go.id/en/fungsi-utama/sistem-pembayaran/blueprint-2025/default.aspx (13) OJK. 2021. Strategi Nasional Literasi Keuangan Indonesia (SNLKI) 2021 - 2025. https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Strategi-Nasional-Literasi-Keuangan-Indonesia-2021-2025/STRATEGI%20NASIONAL%20LITERASI%20KEUANGAN%20INDONESIA%20%28SNLKI%29%202021%20-%202025.pdf (14) CNBC Indonesia. 2018. 4 Tips Memilih Asuransi untuk Perempuan. https://www.cnbcindonesia.com/investment/20180312184304-21-7006/4-tips-memilih-asuransi-untuk-perempuan (15) SEKRETARIAT NASIONAL SDGS. 2019. Indonesia's SDG National Action Plans-RAN SDGs 2021-2024. https://sdgs.bappenas.go.id/category/dokumen/rencana-aksi-nasional-ran/. (16) Yudistra Nugroho, Ilham Samudera. 2018. All eyes on e-money: The race to reach 180M unbanked Indonesians. https://www.thinkwithgoogle.com/intl/en-apac/future-of-marketing/emerging-technology/all-eyes-e-money-race-reach-180m-unbanked-indonesians/
IOA Sources
  • (17) The Jakarta Post. 2021. Grab buys Tokopedia’s, Lippo’s shares in OVO. https://www.thejakartapost.com/news/2021/10/06/grab-buys-tokopedias-lippos-shares-in-ovo.html (18) Putu Agung Wija Putera. 2019. A new unicorn rises as OVO's $1bn valuation confirmed. https://www.compasslist.com/insights/a-new-unicorn-rises-as-ovos-1bn-valuation-confirmed (19) Yoolim Lee, Yudith Ho, and Manuel Baigorri. 2021. Grab Raises Stake in E-Wallet Ovo to 90%, Buys Out Tokopedia. https://www.bloomberg.com/news/articles/2021-10-04/grab-raises-stake-in-indonesia-s-ovo-to-90-buys-out-tokopedia#:~:text=Ovo%20is%20valued%20at%20about,named%20discussing%20a%20private%20deal (20) Fanny Potkin. 2020. Facebook, PayPal invest in Indonesian super app Gojek. https://www.reuters.com/article/us-gojek-funding-facebook-paypal-idUSKBN23A09Y (21) Statista. 2021. Largest banks in Indonesia as of Q1 2021, by total assets. https://www.statista.com/statistics/830681/indonesia-top-banks-by-total-assets/ (22) Statista. 2021. Digital Payments. https://www.statista.com/outlook/dmo/fintech/digital-payments/indonesia. (23) Tempo.co. 2019. OVO Slams Bankruptcy Rumors; Posts 19-fold Revenue Increase. https://en.tempo.co/read/1284272/ovo-slams-bankruptcy-rumors-posts-19-fold-revenue-increase (24) OJK. 2020. Supporting Financial Inclusion for MSMEs through FinTech. for https://ojk.go.id/id/berita-dan-kegiatan/publikasi/Documents/Pages/Financial-Inclusion-for-MSMEs-Through-Fintech/OJK%20Publication%20-Financial%20Inclusion%20for%20MSMEs%20through%20Fintech.pdf (25) The Jakarta Post. 2021. Universitas Indonesia: GoPay drives financial literacy and deeper use of financial services. https://www.thejakartapost.com/ms/gojek-2019/2021/10/26/universitas-indonesia-gopay-drives-financial-literacy-and-deeper-use-of-financial-services.html (26) Statista. 2021. Digital Markets FinTech. https://www.statista.com/outlook/dmo/fintech/indonesia (27) IDNFinancial. 2020. GoPay recorded a total transaction value of US$ 6.3 billion. https://www.idnfinancials.com/news/31591/gopay-recorded-total-transaction (28) Ferrika Sari. 2021. Transaksi logistik OVO meningkat hampir 40%. https://industri.kontan.co.id/news/transaksi-logistik-ovo-meningkat-hampir-40 (29) Fintech Indonesia. 2021. Fintech Corner-Edisi Spesial Kuartal II 2021. https://fintech.id/storage/files/shares/FINTECH%202021/Fintech%20Corner-Edisi%20Spesial%20Kuartal%20II%202021.pdf (30) Daily Social. 2019. Ovo CEO Jason Thompson talks company strategy, investments, and rumors. https://dailysocial.id/post/ovo-ceo-jason-thompson-talks-company-strategy-investments-and-rumors (31) Ken Research. 2021. Indonesia Online Loan and Insurance Industry Outlook to 2024 - Changing Landscape of Financial Products Distribution in Indonesia: Ken Research. https://www.globenewswire.com/news-release/2021/09/27/2303425/0/en/Indonesia-Online-Loan-and-Insurance-Industry-Outlook-to-2024-Changing-Landscape-of-Financial-Products-Distribution-in-Indonesia-Ken-Research.html. (32) Ken Research. 2020. Indonesia Online Loan and Insurance Industry Outlook to 2024 : Compelling Incumbents to pursue growth via Product Development & International Expansion. https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/indonesia-online-loan-aggregator-industry-outlook/347119-93.html (33) Gojek. 2020. UN Women and Gojek team up for women’s economic empowerment. https://www.thejakartapost.com/ms/gojek-2019/2020/09/09/un-women-and-gojek-team-up-for-womens-economic-empowerment.html. (34) Leo Dwi Jatmiko. 2021. Mitra UMKM OVO Naik 95 Persen pada 2020. https://teknologi.bisnis.com/read/20210326/266/1373192/mitra-umkm-ovo-naik-95-persen-pada-2020. (35) The Jakarta Post. 2021. P2P lending: Setting new trends to reach MSMEs and women. https://www.thejakartapost.com/academia/2021/03/03/p2p-lending-setting-new-trends-to-reach-msmes-and-women.html. (36) Republic of Indonesia. 2021. Annexes Indonesia’s Voluntary National Review . https://sdgs.bappenas.go.id/laporan-voluntary-national-review-vnr-indonesia-2021/ (37) World Bank. 2018. Global Findex database 2017. https://globalfindex.worldbank.org (38) ILO. 2019. Financing small businesses in Indonesia: challenges and opportunities. https://www.ilo.org/jakarta/whatwedo/publications/WCMS_695134/lang--en/index.htm (39) Indo Tekno. 2021. KoinWorks dukung partisipasi perempuan di industri fintech. https://www.indotelko.com/read/1615213445/koinworks-fintech (40) Dias Prasongko. 2019. OVO Slams Bankruptcy Rumors; Posts 19-fold Revenue Increase. https://en.tempo.co/read/1284272/ovo-slams-bankruptcy-rumors-posts-19-fold-revenue-increase (41) Program Keluarga Harapan. 2018. APA ITU PROGRAM KELUARGA HARAPAN. https://pkh.kemensos.go.id/?pg=tentangpkh-1 (42) Satya. 2021. REGULATION OF DIGITAL PAYMENT SYSTEMS FOR INDONESIAN FINANCIAL SYSTEM STABILITY. https://berkas.dpr.go.id/puslit/files/info_singkat/Info%20Singkat-XIII-2-II-P3DI-Januari-2021-249-EN.pdf (43) Bank Indonesia. 2019. ECONOMIC REPORT ON INDONESIA 2019.https://www.bi.go.id/en/publikasi/laporan/Documents/7_LPI2019_CHAPTER5.pdf (44) Bank Indonesia. 2016. PERATURAN BANK INDONESIA NO. 18/40/PBI/2016 TENTANG PENYELENGGARAAN PEMROSESAN TRANSAKSI PEMBAYARAN. https://www.bi.go.id/id/publikasi/peraturan/Pages/pbi_184016.aspx (45) Badan Koordinasi Penanaman Modal. 2021. Pedoman dan Tata Cara Pelayanan Perizinan Berusaha Berbasis Risiko dan Fasilitas Penanaman Modal. https://peraturan.bpk.go.id/Home/Details/168903/peraturan-bkpm-no-4-tahun-2021