Indonesian payment gateway IPAYMU has partnered with PayPal to make it easier for e-commerce users to send and receive payments.
Earlier this month, we witnessed local payment provider Doku announce their strategic partnership with PayPal. Not long after that, another Indonesian online payment processor, IPAYMU, had its grand launch after a year and a half in beta stage. IPAYMU highlights their tie-up with PayPal, which is considered the global leader in cross-border online payments. The startup will offer cross border e-commerce solutions, particularly for businesses.
The 6,000 merchants on the online payment gateway so far will be able to accept payments via the American giant through existing IPAYMU tie-ups with 137 banks, both local and international, five ATM networks (Prima, Plus, Link, MAPS, ATM Bersama) with 21,000 ATMs, and 4,000 PT Pos Indonesia post offices across the country. In short, it will enable the respective merchants to sell to 190 countries worldwide with more than 20 currencies.
Riyeke Ustadiyanto Opens the session at the IPAYMU grand launch
Now IPAYMU has officially become one of PayPal’s channel partners in the country, focusing on empowering local small businesses and merchants to sell their products and services worldwide, thus extending their reach.
In 2011, PayPal has reported US$118 billion total payment volume, of which 25% involves cross-border trade. And as of this September, 117 million active accounts have been noted as active.
Co-founder Riyeke “Keke” Ustadiyanto shared several interesting surveys and reports in the main session during the grand launching. These are the main reasons behind IPAYMU’s presence. The startup wants to solve the contentious problems in online payment spaces in Indonesia, aimed at helping to grow the e-commerce industry faster.
Keke reported that the number of e-commerce stakeholders in the country keeps on growing, but there is so much room for improvement. “Association of Indonesian Internet Service Provider (APJII) latest report was saying that currently we have around 63 million internet users. Six percent of them are already used to e-transactions,” he said.
Bank transfer still dominates the method of payment at 57%, followed by Cash-On-Delivery (CoD) at 28%. Credit cards account for 7%, according to last year’s report from the Ministry of Communication and Information (Menegkominfo).
Keke also pointed out the value of e-commerce transactions in the country at IDR 2.5 trillion (US$259 million) which is predicted to reach IDR 7 trillion (US$726.9 million) in three years. Based on Indonesian Credit Card Association (AKKI) and the Central Bank (Bank Indonesia) data, it shows that there are 14.5 million credit cards, 58.3 million debit cards and 4.2 million accounts owned by Indonesians as of end-2011. “Citing MarkPlus survey, the most active e-shopper in the country has hit the number of IDR 3,726,800 (US$387). Average transaction is IDR 200,000 (US$20.75).”
Co-founder Kukuh Tutuko highlights that the solution they offer is very user-friendly. “The transaction is very secure with 256-bit SSL encryption, and the integration with popular CMS such as WordPress, Joomla, Prestashop, Drupal, Magento and OpenCart will open the door of options for those kinds of users.”
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