FinPay Released, Changing the Payment Platform Competition Map

The development of e-commerce in Indonesia is now followed by the development of online payment platform. Various players, from various parties with various scales from domestic and overseas are competing to grab a slice of the market. Today, the market will be even more crowded by the presence of one major local player, FinPay.

I called Finpay as a big player because FinPay is a product of PT. Finnet Indonesia, a subsidiary of Telkom. PT. Finnet Indonesia is a joint venture between Nusantara (METRA) and PT Mekar Prana Indah (MPI) which stocks are owned by Yayasan Kesejahteraan Karyawan Bank Indonesia (YKBI).

FinPay promised a more simple and efficient financial transaction. Cooperating with many banks in Indonesia as well as with Visa and MasterCard, FinPay clearly will make it easy for the customer to do online transaction. A customer can pay with credit card, internet banking, or from the ATM when transacting through FinPay. Because FinPay is a part of Telkom, FinPay’s payment using the ATM and Internet banking will be under the Telkom telephone bill module.

When launched on Wednesday, May 30, in Jakarta, FinPay was already cooperating with many merchants. Some of the famous names that already establishing cooperation with FinPay are LivingSocial, Plasa.com, AppsFoundry, Gold’s Gym, Tempo, Aora TV, as well a few members of the Telkom group such as Telkomsel and TelkomVision.

As a “big player”, it makes sense that FinPay already has connections with many business partners, both from banks and merchants. The presence of such player clearly will rearrange the competition map. Moreover, in the online payment platform competition in Indonesia, there is no established player yet. With good release timing, when e-commerce market in Indonesia is increasing, FinPay seems to be able to do much in the competition. Let’s wait and see.