Facebook, three Indonesian firms in early talks for
mobile payment approval-regulator
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[April 20, 2020] By
Fanny Potkin
JAKARTA (Reuters) - Three Indonesian
digital fintech firms are working with Facebook Inc to apply for
regulatory approval to launch mobile payments in the country, an
official at the financial regulator said.
The plan, if approved, could be among the first such service under the
social media firm's unified payment service Facebook Pay it unveiled in
November, through which users across its various platforms including
WhatsApp and Instagram can make payments without exiting the app.
Bank Indonesia assistant governor Filianingsih Hendarta, who heads
Payment system policy, told Reuters that three local firms had
approached the regulator to ask about tentative approval for a payments
partnership with Facebook.
"So far no one submitted the formal application. Some of them just came
to discuss during the consultative meeting with BI (Bank Indonesia),"
Hendarta said.
She said the three e-wallet operators are Indonesian ride hailing firm
Gojek's GoPay, fintech startup OVO, which is owned by Indonesian
conglomerate Lippo Group and is also backed by Singapore-based riding
hailing firm Grab, and state-backed LinkAja.
Four sources with knowledge of the matter said Facebook wants to
capitalize on the Indonesian market and is preparing for regulatory
approval in the country.
Reuters reported in August that Facebook's WhatsApp had been in talks
with these firms to launch digital payment services in Indonesia.
A spokeswoman for Facebook said the company was seeking to bring digital
payments to more countries and believed "digital payments will... open
up extraordinary opportunities for businesses to grow."
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A 3D-printed Facebook logo is seen placed on a keyboard in this
illustration taken March 25, 2020. REUTERS/Dado Ruvic/Illustration/File
Photo
"We are in conversations with partners in Indonesia, however the discussions are
ongoing and we do not have anything further to share at this stage," she added.
OVO and Gojek declined to comment. LinkAja was not immediately available for
comment.
Facebook is keen to accelerate its expansion in Southeast Asia. Indonesia, home
to 260 million people and the region's largest economy, is one of the largest
markets globally for Facebook and WhatsApp, with over 100 million users.
Facebook is also in separate talks to partner with Gojek, which counts
Alphabet's Google and Chinese e-commerce JD.com among its backers, two sources
said.
"The talks could lead either to a strategic partnership, a collaboration, or an
investment," one person with knowledge of the matter said.
The talks, which predate the coronavirus outbreak, are at an early stage.
Elsewhere in Asia, Facebook has held talks to buy a multi billion dollar stake
in Indian conglomerate Reliance Industries Ltd's telecom unit, media reports
said.
Gojek declined to comment. Facebook referred Reuters to its general statement.
Having evolved from a ride-hailing service founded in 2010 to a one-stop app
offering online payments, food ordering and even massage services, Gojek is
valued at $10 billion.
(Reporting by Fanny Potkin; Editing by Miyoung Kim and Kim Coghill)
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