Friday, 19 April 2024

Indosat partners with Mastercard for digital payments and financial inclusion in Indonesia

5 min read

Indosat Ooredoo Hutchison (Indosat) and Mastercard announced a strategic partnership to jointly develop digital solutions and experiences that will significantly enhance the digital payment landscape in Indonesia.

This partnership aims to empower consumers and businesses in the digital economy and expand financial inclusion across Indonesia.

The signing of the Memorandum of Understanding (MoU) was carried out by Ritesh Singh, director and chief commercial officer of Indosat, and Navin Jain, president director of PT Mastercard Indonesia. 

Vikram Sinha, president director and CEO of Indosat said: "This strategic collaboration is aligned with our larger purpose to connect and empower Indonesia by accelerating the nation's digital transformation. Digital upskilling and financial inclusion, especially those in rural areas, are key to unlocking and maximising the potential of every Indonesian. With the spirit of Gotong Royong (mutual cooperation), this joint effort with Mastercard will allow us to create infinite financial solutions for accelerating the growth of the digital economy of Indonesia."

Ari Sarker, president of Asia Pacific, Mastercard, said: "Digitisation is a key pillar in the roadmap towards a truly inclusive economy. The digital economy can bring more opportunities to more people, but reaching that potential requires close collaboration. Hence, Mastercard is excited to work closely with Indosat –a partner that shares the same commitment– to empower Indonesians for the digital future, bring more individuals and SMEs into the digital ecosystem, and help advance inclusive growth for the Indonesian economy. This partnership also underscores Mastercard's commitment to bring one billion people and 50 million micro and small businesses into the digital economy globally by 2025."

Indonesia, the largest economy in Southeast Asia, has seen the value of its digital economy grow significantly. In 2025, the value of Indonesia's digital economy is estimated to grow two-fold to $130 billion and will continue to reach $220 billion to $360 billion in 2030. In line with this growth, Indonesians' demographics and consumer behaviour have changed tremendously in the past years.

With growing smartphone penetration, consumers increasingly shift to digital payment methods that offer convenience, flexibility, and enhanced security. This has led to accelerated adoption of digital wallets, "super apps" that provide multiple services in one platform, and digital person-to-person (P2P) or person-to-merchant (P2M) payments, all of which are rapidly replacing cash. Small and medium-sized enterprises (SMEs) are also embracing the digital future through digitisation and a shift toward convenient, quick-to-deploy solutions that address consumers' evolving lifestyles and digital payment preferences, as well as demand for improved security in cashless transactions and hyper-personalised experiences.

This collaboration between Indosat and Mastercard is also designed to help enhance security standards and fortify greater trust among all users across the digital ecosystem to create a safer and more inclusive digital economy that everyone is confident to participate in and can benefit from. Both organisations intend to co-operate on introducing scalable products and solutions incorporating safety and cybersecurity capabilities to enable safe, seamless digital experiences that correspond to how consumers and businesses live, work and transact in today's digital age. The partnership also aims to support SMEs by providing them with cutting-edge tools and resources to compete in the post-pandemic digital-first world.

As part of the collaboration, both organisations will explore solutions for consumers that are focused on driving digital payments with cards and account-based payments, increased access to credit such as buy now pay later (BNPL), enhanced security on payment methods, and solutions that offer greater consumer engagement and rewards.

Re-disseminated by The Asian Banker

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