Indonesian mobile payment: local tyrants can't burn?

There have been four leaders in Indonesian payment: OVO initiated by Lippo, GoPay owned by GoJek, Dana, a joint venture between Ant and local Emtek Group, and LinkAja formed by the merger of several Indonesian state-owned mobile payments (see: Indonesia's payment pattern has changed dramatically).

The reason why these four companies can stand out in the fierce competition in the payment war is that they have stronger background and ability than other competitors, and burning money to subsidize users has contributed a lot.

However, any game that burns money will face the following questions for shareholders: When can the burnt money be earned back?

recently, some shareholders seem to be less confident, perhaps they can't burn. After all, many times users are competing with each other, and the access of new users needs incomplete or more than subsidies.

At present, some participants in the market are seeking some new changes:

First, major shareholders sell old shares

The initiator of OVO is Lippo Group, and its shares have been diluted from the initial wholly-owned to less than 15%. Who are our shareholders in OVO? In this paper, the ownership structure of OVO is disclosed in detail. As of May, the largest shareholder of OVO e-wallet is Grab, holding 41%, the e-commerce unicorn Tokopedia holds about 38%, and Lippo Group and early investor Tokyo Shengshi Lizhan shares hold about 21%.

Recently, some brokerage firms FA are peddling the old OVO shares held by Lippo, and one of them "quoted" a large number of excerpts and charts published by Morten. And some Lippo executives sent to OVO have also been transferred to other digital economy companies under the group.

admittedly, this is a good thing for Grab, as long as the supervision keeps turning a blind eye to OVO's foreign capital structure. As we said, Grab bypassed the issue of Indonesia's payment license through OVO, and then the binding between Grab and OVO may become deeper and deeper.

in addition to lippo, Emtek is said to be showing signs of being overwhelmed, and is also in contact with some other employers. Among all the wallet projects of Ant Southeast Asia, DANA should be the most handy in terms of product technology. The joint venture partners not only have no technical ability in this area, but also have no preconceived products, so they can let ants at least play freely in product technology.

DANA is very much like a copy of Alipay.

Second, GoPay is split into independent applications.

GoJek has four business groups, namely travel, payment, take-away, shopping and life services. Previously, these services were embedded in the GoJek application, but they were not independent.

recently, however, GoJek has spun off the life service GoLife, including services such as GoMassage, cleaning, auto care and beauty. You can also choose these services on the GoJek application, but users will be reminded to download GoLife.

Of course, GoLife is full of applications with relatively low frequency of Gojek, but it is still quite popular. GoPay, which is expected to be more frequent than taxis, is also a non-independent application at present, but there have been rumors recently that GoPay may become an independent payment application like Alipay.

At present, users can donate money to Indonesia crowdfunding platform Kitabisa through GoPay (friends who want to copy water droplets in Indonesia can refer to Kitabisa), and they can also pay on game platforms such as Mobile Legend.

in addition, GoJek's ongoing round f financing has joined a new owner, the American card organization Visa. Therefore, various factors are superimposed. Although GoJek said that "there is no plan to split", it is conceivable that splitting is very possible.

and Grab also reported earlier that it would separate its financial services companies and raise funds independently. At this point in the market, both sides need to continue to store ammunition, and it may be necessary to make some structural adjustments for this.

iii. cooperation between GoJek and LinkAja

in July, there was a rather unexpected news that GoJek and LinkAja announced a formal cooperation to integrate the payment function of LinkAja into the GoJek platform.

While the PR draft is flying all over the sky, we feel that the main purpose of this announcement may be to force the central bank to speed up the interconnection policy between wallets. There are bilateral and multilateral exchanges between wallets, and this public relations is also in line with GoJek's consistent style.

burning money may be unsustainable, so the interconnection between wallets will continue. However, it will take some time to solve the policy problem of mutual liquidation, and the government's liquidation system seems to have not moved much.

Fourth, there are new players entering the stadium

At present, the competition is fierce, but there are still new players entering the stadium. At the end of June, the director of AirAsia Indonesia, which is famous for its cheap air tickets, announced that AirAsia will register an independent company in Indonesia this year and expand Bigpay, which has been put into operation in Malaysia, to Indonesia. AirAsia said it was applying for a license from OJK, but did not give a specific timetable.

advertising of BigPay in Kuala Lumpur airport

however, bigpay has not made much progress in Malaysia. Although airlines have relatively high-quality users, their own scenes are limited after all, which is not as good as the high-speed charging system Touch N Go wallet invested by ants or Boost of telecom companies (of course, it is better than Razer's payment).

An offline store in Malaysia

Moreover, in Indonesia, the market share of ADB is lower than that of lion air, especially on domestic routes.

lion air route map

According to a recent report by Redseer, Indonesian e-wallet will increase from 1.5 billion dollars in 218 to 25 billion dollars in 223. We think that the current four will be integrated into two or three, and people outside the wall will continue to want to come in.

Morton Venture Capital is headquartered in Singapore, with permanent teams in Indonesia, China and United Arab Emirates, and strong local resources in emerging markets such as Southeast Asia, India, Middle East and Latin America. Morten has long been concerned about the rapid development of overseas markets, using local resources, implementation experience and teams to incubate its own, joint venture or cooperative projects, and at the same time formulating plans to assist overseas market explorers and investors in making decisions and landing.

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