Indonesia could be the second country that offers WhatsApp payment services. As reported by Reuters, the Facebook-owned messaging service is reportedly engaging in talks with multiple local fintech firms to provide their mobile transaction services.
WhatsApp first targeted India, where their plan to offer direct peer-to-peer payments services was halted by for regulatory concerns over local data storage. Now, in a bid to tap the fastest-growing e-commerce sector in Indonesia, the offer is different.
WhatsApp would serve as a platform supporting payments through digital wallets. The change was due to strict licensing regulations, according to sources.
The booming value of the Indonesian market
With a population of 260 million and a thriving economy, the country is on the top five global markets for the messaging service, with currently more than 100 million users. This translates into roughly 40% of the population using WhatsApp.
According to a McKinsey report, Indonesia’s e-commerce market value was valued at $8 million in 2017. This figure refers to the gross merchandise value (GMV) of goods and services purchased online from e-commerce and socio-commerce platforms. These include formal e-tailing businesses and informal commerce.
Formal e-tailing businesses are what we know as eBay and Amazon. In the region, JD, Lazada, Shopee and Tokopedia are the main actors. Informal commerce, which corresponds to the ‘socio-commerce platforms’, means transactions take place through unofficial means, through platforms such as WhatsApp and Facebook.
McKinsey expects the GMV of the formal e-commerce platforms to reach $40 billion by 2022, while the GMV for informal e-commerce is estimated to read $25 billion.
Given these impressive rates, it’s no surprise that Reuters expect the Indonesian e-commerce industry to reach $100 billion by 2025.
Strict regulations are expected
Reportedly, WhatsApp is currently in discussion with several digital payments firms, such as ride hailer Go-Jek, mobile payments firm DANA, fintech startup OVO and state-owned Bank Mandiri.
However, Indonesia is home to one of the strictest digital payments regulations. According to Reuters’ sources, WhatsApp’s plan for Indonesia could become an exportable template to other emerging markets. This would make it easier to “get around regulations on foreign players creating their own digital wallets.”
A Facebook spokesperson didn’t provide specifics:
“WhatsApp is in conversations with financial partners in Indonesia about payments, however the discussions are in early stages, and we do not have anything further to share at this stage.”
However, sources say that conversations with the three payments firm are close to being finalized. The launch of the service isn’t expected this year, as the priority is to launch in India first.
This information comes after Facebook revealed, early this year, that it would be rolling out WhatsApp payments in some countries. As previously reported by The Blockchain Land, Facebook wants to integrate Calibra, a crypto wallet service, into all of its platforms, and that includes WhatsApp and Facebook Messenger.
Thanks for another informative site. Where else could I get that type of information written in such a perfect way? I’ve a project that I am just now working on, and I have been on the look out for such info.
After examine just a few of the weblog posts on your website now, and I really like your way of blogging. I bookmarked it to my bookmark website listing and will likely be checking back soon. Pls check out my website as nicely and let me know what you think.
Hello my family member! I want to say that this post is amazing, nice written and include almost all important infos. I would like to look extra posts like this .
There are definitely quite a lot of particulars like that to take into consideration. That may be a great level to bring up. I offer the thoughts above as common inspiration however clearly there are questions just like the one you carry up where crucial thing will probably be working in sincere good faith. I don?t know if greatest practices have emerged round things like that, however I am certain that your job is clearly identified as a good game. Each girls and boys really feel the influence of just a moment?s pleasure, for the remainder of their lives.
Probably one of the best articles i have read in long long time. Enjoyed it. Thank you for such nice post.
Thanks for sharing excellent informations. Your web site is so cool. I am impressed by the details that you have on this blog. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found simply the info I already searched everywhere and just couldn’t come across. What an ideal web-site.
I know of the fact that these days, more and more people will be attracted to cameras and the area of digital photography. However, as a photographer, you will need to first shell out so much period deciding the exact model of photographic camera to buy plus moving store to store just so you could possibly buy the most inexpensive camera of the trademark you have decided to choose. But it will not end there. You also have to take into consideration whether you should purchase a digital photographic camera extended warranty. Thanks for the good suggestions I gained from your site.
Good day very nice web site!! Guy .. Excellent .. Amazing .. I’ll bookmark your blog and take the feeds additionally…I am happy to seek out numerous helpful information right here in the submit, we want develop extra strategies on this regard, thanks for sharing.
Dear theblockchainland.com webmaster, Your posts are always a great source of knowledge.
Thank you for sharing superb informations. Your web site is very cool. I am impressed by the details that you?ve on this web site. It reveals how nicely you understand this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found just the info I already searched all over the place and just could not come across. What a great web site.