Indonesia payment platform GO-JEK has acquired three FinTech businesses to help it bolster its position in the payment sector.
The company has bought offline payment processor Kartuku, online payment gateway Midtrans and community-based saving and lending network Mapan. Collectively, these companies process almost $5bn in credit/debit card and digital wallet transactions.
GO-JEK initially launched in 2010 as a motorcycle ride service, but now operates a range of solutions from its mobile platform, for services such as transportation, logistics, mobile payment, and food delivery, among other on-demand services. The company’s GO-PAY solution enables consumers to make ‘everyday payments’, make cash withdrawals or view transaction history.
The company also has a billing application, GO-BILL, and allows consumers to digitally pay for PLN electricity bills, purchase PLN electricity tokens, and pay BPJS insurance premiums.
Through the acquisition of these companies, GO-JEK will be able to offer an inclusive payment ecosystem for financial institutions, enterprises, SME merchants and banked/unbanked consumers. GO-JEK will look to expand its GO-PAY solution, to boost the use of its digital wallet and payment processing in Indonesia.
Following the investment, the companies will continue to operate as normal, but will be part of the GO-JEK Group. The chief executives of the three businesses will take up senior management roles in the GO-JEK Group, with Mapan’s Aldi Haryopratomo heading GO-PAY, Midtrans’ Ryu Suliawan leading the merchant platform and Kartuku CEO Thomas Husted becoming GO-JEK’s CFO.
Andre Soelistyo, GO-JEK Group president, said “The acquisitions will immediately accelerate the acceptance and market leadership of GO-PAY in the offline space through Kartuku as well as the online space through Midtrans, while also increasing financial inclusion for the unbanked through Mapan.
“This approach to finance, implemented by leading home-grown Indonesian technology businesses within GO-JEK Group, will accelerate financial inclusion for millions of Indonesians and stimulate economic productivity throughout the country.”
Kartuku was founded by Niki Luhur, with it launching its payment processing solutions in 2011. The company is an offline payments services provider, operating 150,000 POS devices and partnerships with nine acquiring banks. The solution will help GO-PAY offline uses with integration of mobile wallet acceptance at merchants.
Midtrans, founded in 2012 by Ryu Suliawan, is an online payment processor for Indonesia, partnering with banks, airlines, e-commerce retailers and FinTech companies. The company will increase GO-JEK’s online payments reach, by not only helping with digital processing by with fraud prevention.
Founded in 2009 by Aldi Haryopratomo, Mapan is a financial network that helps communities with savings and loans. The solution encourages people to save money, or lend it to local businesses. Through the acquisition, the company will help financial inclusion, particularly in rural areas.
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