Predicting The Logic Behind Go-Jek's Acquisition Rumor on Two Payment Services

Go-Jek, Indonesian unicorn startup, became the headline of the acquisition-related rumors of two payment services (for some reason the name would not be mentioned in this article). Perhaps most people still wonder why two payment services (also why two, not just one) are subjected to the acquisition of an on-demand service departing from an easy-booking service.

It can’t be confirmed that the rumors were true, because we did not get an official confirmation. Nevertheless, some reliable sources has mentioned that there are indications to that, even an agreement might already occurred.

It’s time for Go-Pay to "shine"

Speaking about payment can’t be parted from Go-Pay as Go-Jek payment service. Go-Pay is a phenomenon that becomes part of user's everyday life and as it has been sounded by Co-Founder and CEO of Nadiem Makarim, Go-Pay is ready to get out of the Go-Jek ecosystem and purely becomes digital payment tools.

In order to get out of its own ecosystem, Go-Pay needs "vehicles" to speed up its adoption across platforms. There are not many B2B payment gateway platforms that dominate the Indonesian market and with Doku being  acquired by EMTEK, only one online payment platform becomes a serious candidate as Go-Pay partner. Looking at the sites, they have already offered Go-Pay as a supported payment tool.

If one platform has been acquired, is it necessary to acquire another payment company? We must notice the strengths and weaknesses of each payment company and Go-Jek's ambition with Go-Pay.

One is strong enough with online payment services, but has no presence in offline payment services (primarily related with EDC). The other is strong in offline payment services and has an extensive network with thousands of leading retailers.

If Go-Jek acquires both, they will create new synergy to encourage enormous use of Go-Pay. Not only for online transactions, but also offline transactions. Imagine shopping at local grocery store or fancy outlets in the mall using Go-Pay.

QR Code technology has become the "bridge" between the two worlds (offline and online), as already indicated in China which became the mecca of Indonesian startup development. It will simply integrate Go-Pay with QR Code and voila Go-Pay can be WeChat Pay or Alipay of Indonesia.

Synergy to win the payment platform game

There is a different sentiment felt when a local synergy do a head-to-head fighting at the same level with global player. Go-Jek currently leads Indonesian market against Grab and Uber in on-demand market and competition between the three already extends to the payment platform.

Grab took Kudo and Lippo Group, while Uber is in partnership with Tokopedia. Go-Jek certainly can not just sit still. The acquisition of these two payment platforms will strengthen Go-Jek's position in digital payment area. Dominate the payment system, as we have seen in China, and it will not be difficult to make a profit.

Still, is there any confusion among crowd on how Go-Jek retaining the income?

- Original article is written in Indonesian, translated by Kristin Siagian