Updates: We have included new information about OVO replacing TokoCash on Tokopedia platform starting on Saturday.
Indonesian e-commerce giant Tokopedia and Lippo Group-backed cashless payment service OVO today announced a new partnership that will make OVO available as a payment option on Tokopedia’s online marketplace platforms.
In mid-October, Tech In Asia reported about the possibility of Tokopedia shutting down its e-wallet feature TokoCash, to be replaced by OVO, as the former continue to struggle in securing e-payment license from the authority.
On Saturday, Tokopedia confirmed the replacement by making an announcement for its customers that TokoCash has been “changed” into OVO.
Customers’ TokoCash credits will be automatically transferred to their new OVO account once they activate it; the OVO account can also be used for transactions on other online platforms or offline retailers.
Tokopedia Head of Corporate Communications Priscilla Anais stated that, “Tokopedia is focussed on providing our customers with the best customer experience and the partnership with OVO’s open ecosystem will provide the best e-money solution for our users. OVO has the widest acceptance in offline retail and O2O services, with a presence in 90 per cent of all malls as well as market-leading O2O services across 500 cities in Indonesia.”
In a press statement, OVO explained that its partnership with Tokopedia is part of its three-prong strategy to introduce mobile payment to the wider Indonesian customers: By partnering with offline retails (shopping malls, warungs, grocery stores), online-to-offline (O2O) services such as ride-hailing giant Grab (where it has replaced GrabPay as Grab’s payment feature in the Indonesian market), and e-commerce platforms such as Tokopedia.
As a result of the partnerships, OVO claimed to become the largest mobile payments platform in Indonesia by transaction volume and reach.
The company expected to add in Tokopedia’s 80 million monthly active users and four million merchants to its existing user base of 60 million.
“We expect the surge in new users and additional transactions from e-commerce to drive market leadership for OVO across the board,” said OVO CEO Jason Thompson.