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PPOB, Indonesian Fintech Startups Is Not Just About Lending

PPOB, Indonesian Fintech Startups Is Not Just About Lending

February 9, 2022

It is no secret that Indonesia's digital financial industry is thriving, especially within the financial technology (fintech) sector. According to a report by Switzerland Global Enterprise, financial technology services sales in the country are predicted to reach US$8.6 billion in 2025, growing at a compound annual growth rate (CAGR) of 34%.

According to Fintech News Singapore in 2021, lending and payments dominate the local fintech ecosystem, accounting for 61.4% and 19.3% of firms respectively. Amidst the thousands of financial services available in Indonesia, PPOB is arguably one of the thriving ones within this ecosystem.

PPOB or payment point online bank is an online payment service system, commonly operated by utility providers in cooperation with banking institutions or other partner providers. In Indonesia, these providers include the likes of PLN (the State Electricity Company), Telkom (the State Telecommunication Company) and PDAM (the Regional Water Utility Company). As a system, advantages of PPOB allows customers to pay all types of bills in one platform, such as credit card, phone, water, and electricity bills. In recent years, fintech and ecommerce startups are also providing similar systems as well.

Why is Payment Point Online Bank (PPOB) Popular in Indonesia?

Cashlez | Blog | Electronic Wallet and Payment Gateway, What are the  Differences?

The simple answer is because as mentioned earlier, the country has a large unbanked and underbanked population without access to traditional banking services. According to Google, Temasek and Bain & Company's report, Indonesia still has 92 million unbanked and 47 underbanked population nationwide. This population either still relies on cash or alternative internet payment systems like mobile wallets, where the latter is most likely attributed to 100 million smartphone owners and 204.7 million internet users nationwide.

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With this data in mind, the number of companies (esp. those in the fintech and ecommerce sector) that are willing to provide PPOB is increasing by the day. This service not only eases the regular payment process for customers, but also opens up to more revenue streams for your business in the future. The number of smartphone and internet-savvy users in Indonesia is still intensively growing as of date, and this will be a good time to provide the convenience that they are looking for.

How Ayoconnect Can Help You Integrate PPOB in Your Business

Open finance startup Ayoconnect's APIs enable financial inclusion in  Southeast Asia | TechCrunch

Through Ayoconnect's leading PPOB API, we offer you the most comprehensive assortment of digital products. In just one API, we have seamlessly integrated 4000+ products across 24 categories, including credit card payments, electricity tokens, water bills, e-money top-ups, credit card payments, multi-finance loans, streaming tokens and more.

As a service provider that's trusted by over 200+ companies in South-East Asia, we are capable of equipping you with the best market-leading solution-- ensuring that your business providers embedded digital products and bill payments for your customers. All on-going maintenance will also be done for you, so you do not need to worry about taking care of the operation overhead and day-to-day maintenance. Ayoconnect has designed our API for simple integration in order for you to be able to focus solely on your customers.

If you are keen to know more about how you can also integrate PPOB for your customers and enjoy all the benefits hassle-free, our team will be more than happy to give you a demo customized for your business here. We look forward to connect and #MoveForward with you soon!