Payfazz Secures E-money License from BI, Focusing on User Base in Rural Area

Currently focused on providing access to financial services to people in rural areas, Payfazz will soon enter the electronic money (e-money) business. It was marked by obtaining a license from Bank Indonesia on June 28, 2021 as a server-based Electronic Money Provider through PT Cashfazz Teknologi Nusantara, a subsidiary of Fazz Financial Group.

Was founded in 2017, Payfazz has helped more than 700 thousand MSMEs or agents providing more than 80 million people through its application. It enables merchants to serve various types of transactions, including PPOB payments.

"This is a very significant achievement that we have been waiting for for a long time. With the electronic money license, we can bring the company's goal closer to becoming an integrated financial service provider application for people without access to banking services." Payfazz' Co-Founder & CEO, Hendra Kwik said.

Furthermore, this license will be used by the company to create more opportunities to facilitate agents, especially to assist global and local corporate clients at Xfers in collecting payments from the unbanked community.

Previously, Fazz Financial Group had obtained a remittance license through Bank Indonesia, activated payment gateways for both global and local companies through its investment in Xfers (Licence for Large Payment Institutions - MAS), penetrated the digital banking industry through collaboration with BRI Agro (BRI's subsidiary), and developed loan services through its investment in Modal Rakyat (OJK licensed for P2P financing).

"We expect this license to bring positive impact on the company's business as a financial service provider and drive transaction volumes three times up the current one. This electronic money license has the potential to strengthen synergies between Payfazz and other financial products within the Fazz Financial Group," Hendra said.

As of May 2021, Fazz Financial Group claims to have processed transaction volume over $10 billion per year through its product ecosystem, and this electronic money license can increase the transaction volume even higher.

Partnership expansion

Over the past two years, Payfazz has continued to expand partnerships with fintech startups and other related services, by presenting attractive products and services for MSME players in the country. Starting from Payfazz Buku, supported by Credibook, and launching several products for MSME players.One of the products is Warung Online, which allows orders from customers to be recorded directly in the Payfazz application.

Payfazz' basic services in particular provide bill payments, money transfers, merchant payments, loans, and deposit/savings services for the unbanked through platform partnerships with various financial institutions.

–Original article is in Indonesian, translated by Kristin Siagian