Indonesia-based digital payments platform Ayopop today announced it has raised US$1 million in a seed round led by GREE Ventures. Sandeep Tandon, the Founder of FreeCharge, an India-based mobile payments platform, as well as other angel investors also participated in the round.
It will use the newly-raised capital to expand its tech capabilities, and will aim to grow beyond bill payments in the near future. Ayopop will also focus on establishing partnerships with e-commerce and traditional market players, as well as financial service companies.
Launched in 2016, Ayopop aims to help Indonesians pay a variety of utility bills such as electricity, water, internet & TV, mobile postpaid subscriptions via a mobile app. Users can access customer support 24/7 within the app.
Ayopop was co-founded by Jakob Rost, a former Managing Director at e-commerce platform Lazada Indonesia. The other co-founder, Chiragh Kirpalani, headed product developments while working with Fab.com and Times Internet India.
“Most Indonesians are still paying their bills offline. This behaviour is ultimately shifting online and therefore offering big potential for companies like us. And this is just the beginning,” said Ayopop, in an official press statement.
“Most of our users have never done an e-commerce transaction before and come from all parts of Indonesia. Hence we are doing a lot of the education for their first ever online transaction.”
In Indonesia, low adoption of traditional bank accounts and a boom in smartphone usage has led to a growth in digital payment platforms. Some allow users to pay digitally by topping up their e-wallets with cash through brick and mortar retailers, for example.
Ride-hailing services such as Go-Jek are also linking up with banks to encourage Indonesians to pay for rides using e-wallets.
However, digital transactions in Indonesia still face significant hurdles as users fear security breaches. The good news is that government has recently put forth regulations to ensure payment gateways up to scratch.
Image Credit: Ayopop