Fintech Startup Duitku Focuses as Payment Gateway Provider for SMEs

As the number of SMEs in Indonesia increased, particularly in the creative economy, it becomes an opportunity for fintech startup Duitku to maximize its business through the payment gateway - based products. As the segment needs flexibility in fund transfer or receiving at an affordable price. Duitku offers solutions for players who still using the manual transaction.

If the transaction rate is still low, it's not going to be a problem. However, as business is scaling, the human error risk is increasing. Moreover, there is also fraud risks. Therefore, Duitku is using social payment gateway as a concept.

"So creative economy entrepreneurs, which is generally small in number, be able to compete with the big companies. In this case with low transaction fee," Rezha Budiono, Duitku's Co-Founder and CEO, said.

He illustrated that Duitku collects transaction from all stores registered in the platform. Furthermore, facilitate them with banking to disburse money at a lower cost than to collect it themselves.

"It can also loosen the competition between SMEs and giant companies because this concept gives the best price by collecting transactions from every merchant. The more merchants included, the lower transaction cost will be."

Duitku receives income from fee based on payment methods, starting from Rp3,000 for a virtual account. Budiono claimed the company has processed more than 100 thousand transactions with 500 merchants. Mostly are engaged in hosting and the online store industry. Klix TV is one of them.

He targets to acquire 10 thousand merchants as Duitku users by the end of this year.

To guarantee a safe transaction, Duitku is claimed to use two systems for fraud detection. They also have the PCI DSS International safety standard certificate from TUV Rheinland.

"We will keep making innovations to provide various solutions for entrepreneurs and improve the creative economy ecosystem growth in Indonesia," he said.

– Original article is in Indonesian, translated by Kristin Siagian