At the end of 2016, Tokopedia launched a new credit card application feature on its platform. This is the first step that the Indonesian online marketplace is taking in entering the fintech landscape. The company also plans to make it easier for users to apply for loans, insurance, and investment. These steps strengthen the indication that the e-commerce giant is aiming for a business diversification. Prior to this, its competitor Bukalapak has also started to explore fintech by launching BukaReksa.
In the past one year Tokopedia has been aggressively launching new features starting from payment channels to services such as mobile phone and home electricity credits purchase, among the few.
Despite having just reached socialisation stage, through Tokopedia, Indonesian users who wish to apply for credit cards can easily use the platform with various promotions included.
“As we have already known, in Indonesia, the number of credit card ownership still falls below three per cent. Sixty million people owned bank accounts, while there are 100 million internet users. There is a huge gap between those who have gone online, but is still unable to do payments online,” Tokopedia CEO William Tanuwijaya told DailySocial.
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Tanuwijaya added that e-commerce services in Indonesia differ greatly than those in the US and other developed countries with high credit card penetration, making it easier to perform transaction online.
“One of our strategies to handle this issue, as well as to promote e-commerce transaction in Indonesia is innovating in new payments channel, cash payments in minimarts and post offices. In 2016, Indonesian internet users who own neither credit cards nor bank accounts are already able to shop online and pay with cash at Indomaret, Alfamart, Alfamidi, 7 Eleven, Lawson, and the post office,” Tanuwijaya said.
Partnership with leading foreign bank
To give greater options for Tokopedia users, Tokopedia has already fostered partnerships with Citibank, HSBC, and Standard Chartered. Tokopedia will also expand the partnership by embracing local banks in the country. Tokopedia also claimed that its new credit card application feature can also help the government in pushing for a cashless society for all sorts of available transactions.
“One of the ways is by fostering partnership with credit card issuers, and by giving easy access for Tokopedia users to apply for credit cards. Even on Tokopedia you can also pay for credit card bills easily,” Tanuwijaya said.
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The credit card application feature is the first to be launched by a local marketplace. In this sector, Tokopedia will compete directly with financial product comparison services such as CekAja and Cermati. Tokopedia’s strength lies in its massive user base and strong brand recognition in the public.
Throughout 2017, Tokopedia still aims to present more new payments channels to ease transaction for every Indonesian. The company believed that apart from having low financial product penetration, e-commerce transaction is still centered in Java and big cities across the country.
The company will also open access to more financial services such as loans, insurance, savings, and investment for users in different ends of the country.
The article Tokopedia Rambah Layanan Fintech Tahun Ini was written by Yenny Yusra and was first published on DailySocial. English translation by e27.
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