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Investors Bullish on Indonesia’s Fintech Sector

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Fintech continued to lead Indonesia’s startup funding landscape in 2020, making up for most of the money raised that year, ahead of software-as-a-service (SaaS) and e-commerce. 2020 marked the fourth year where fintech dominated the amount of funding in the Indonesian digital ecosystem, according to a report by market research company DSResearch, in partnership with banking institution CIMB Niaga.

Business vertical funding in Indonesia, Source- Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

Business vertical funding in Indonesia, Source: Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

The annual Fintech Report, released on December 22, 2020, sheds light on the state of fintech in Indonesia and outlines the key trends that emerged in 2020.

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According to the report, fintech companies raised US$360 million in disclosed funding in 2020, up more than 65% from 2019’s US$217 million. Deals were larger in size in 2020 and a number of rounds went towards Series B and later-stage investment.

Notable deals that were in 2020 include Investree, Indonesia’s largest business-to-business (B2B) marketplace lending platform for small and medium-sized enterprises (SMEs), which raised US$23.5 million in a Series C funding round in April, and Payfazz, a fintech startup targeting the unbanked populations, which raised US$53 million in a Series B in July – the largest disclosed fintech venture round in 2020.

COVID-19 gives fintech a boost

With COVID-19 forcing consumers to move to digital channels, the fintech sector experienced growth in 2020 amid physical restrictions.

Total volume in alternative financing in 2020 reached IDR 128.7 trillion (US$9 billion) in September, more than doubling 2019’s levels. The number of borrower accounts also doubled in 2020, surpassing 29 million.

Fintech Lending Statistic/OJK, Source: Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

Fintech Lending Statistic/OJK, Source: Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

Digital wallets also benefited from the social distancing measures put in place to limit the spread of the virus. LinkAja, for example, saw top-up transactions grow twofold after the outbreak emerged in Indonesia. In terms of transaction volume, the company said in July that its platform had recorded 700% growth.

Total e-money transactions from January to August 2020 reached IDR 126.95 trillion (US$8.9 billion), a 31% increase compared to last year.

A consumer survey conducted as part of the report found that GoJek’s e-wallet GoPay dominated the landscape in 2020 in terms of usage (87%), followed by OVO (80.4%) and DANA (75.6%).

Digital wallets usage in Indonesia, Source- Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

Digital wallets usage in Indonesia, Source: Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

Across all major fintech verticals, digital wallets were found to be the most used fintech solution in Indonesia (70.7%), followed by paylater (45.2%) and investment (28.4%).

Usage of fintech products in Indonesia, Source: Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

Usage of fintech products in Indonesia, Source: Fintech Report 2020, DSResearch in partnership with CIMB Niaga, Dec 2020

For each vertical, the most used fintech solutions in 2020 was: ShopeePayLater (paylater), BiBit (investment/wealthtech), Asuransiku.id (insurtech), CrowdDana (equity crowdfunding), Akulaku (payday loan), Modalku (working capital loan), Doku (remittance) and Kredivo (consumer loan).

Fintech growth momentum to continue in 2021

Fintech is expected to further grow in 2021 on the back of new, favorable regulations.

The country’s Financial Service Authority (OJK) is currently revising existing rules that cover online lending. The changes, which are expected to be formalized by the end of Q1 2021, will introduce stringent requirements for new fintech entrants to ensure sustainable growth of the industry.

A new data protection bill is also in the works. The bill, which is currently being discussed by the parliament and might be passed into law in 2021, will allow victims to sue platforms for violations in the handling of personal information.

As of late-2020, Indonesia was home to 322 fintech companies, in addition to 125 registered but unlicensed online lenders, according to the Indonesia Fintech Report 2020 produced by Fintech News Singapore. Alternative financing dominated the landscape, accounting for half of all Indonesian fintech startups, followed by payments (23%) and blockchain/crypto (8%).

The report names 15 fast-growing fintech startups to watch out for in 2021, among which UangTeman, one of the first P2P cash lenders licensed by OJK, Investree, as well as Pluang, a startup providing digital micro-savings products.

UangTeman is expanding to the Philippines and is in the process of obtaining a license. Similarly, Investree is looking to launch in other Southeast Asian countries, starting with Thailand and the Philippines. And Pluang is working on new savings products after receiving funding from Go-Ventures.

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Source: https://fintechnews.sg/47122/indonesia/investors-bullish-on-indonesias-fintech-sector/

Blockchain

How XRP Ledger Can Help Central Banks Create and Manage Digital Currencies

FinTech firm Ripple says that it is “piloting” a private version of the open-source public XRP Ledger (XRPL) to allow central banks to create and manage their own digital currencies. The XRP Ledger was created in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto, and XRP is the native currency of the XRP Ledger. […]

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FinTech firm Ripple says that it is “piloting” a private version of the open-source public XRP Ledger (XRPL) to allow central banks to create and manage their own digital currencies. The XRP Ledger was created in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto, and XRP is the native currency of the XRP Ledger. […] Checkout PrimeXBT
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Source: https://www.cryptoglobe.com/latest/2021/03/how-xrp-ledger-can-help-central-banks-create-and-manage-digital-currencies/

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Blockchain

Indonesian Fintech Firm Payfazz Invests $30 Million in Xfers

Payfazz made a strategic investment in the Singapore-based firm to establish Fazz Financial Group.

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Blockchain

Revolut Expands Banking Services to 10 More European Countries

These are already available in Lithuania and Poland.

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Blockchain

Apple Pay Users Can Now Buy COTI Via Simplex

Simplex has now added Apple Pay as a supported payment method, allowing its users to use the popular digital payment app to buy COTI more simply. With 45% of Americans owning an iPhone and Apple dominating 11% of the world mobile market, Apple pay has become one of the most used apps for paying for […]

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Simplex has now added Apple Pay as a supported payment method, allowing its users to use the popular digital payment app to buy COTI more simply.

With 45% of Americans owning an iPhone and Apple dominating 11% of the world mobile market, Apple pay has become one of the most used apps for paying for goods and services straight from a user’s phone.

This integration will not only facilitate the purchasing of COTI and other cryptocurrencies in the SImplex platform but also improve security by not requiring users to provide their credit card information over the internet.

COTI also announced that it has continued its partnership with Simplex to launch the COTI debit cards and bank accounts in the future, with the design development being scheduled to start in the near future.

Facilitating Payment Trough Crypto

Coti announced back in December of 2020 that it would be launching its COTI Pay debit card and bank accounts in January of 2021.

However, the issuance of the products was delayed and no specific date has been set while the company continues to work in partnership with Simplex.

The team behind the project expects that the issuance of the physical and virtual debit card will significantly increase the adoption of the network by facilitating crypto payments both for users and merchants alike.

COTI debit cards will be available globally but originally launched in Europe, followed by the United States, Asia, Oceania, and other regions.

The bank account, on the other hand, will be immediately available globally and work as a gateway between fiat and cryptocurrencies not only by allowing users to store them in the COTI Pay app but also by facilitating the conversion between both types of currency.

COTI aims to provide features such as no maximum purchase limits, 1-click transactions with various partners, 1-time know your customer (KYC) process, and a variety of payment and transfer options.

COTI and Simplex: A Long Time Partnership

COTI and Simplex originally announced their partnership on June 18 of 2019, with the aim to optimize crypto payment processing by using state-of-the-art fraud prevention solutions, AI technology, and Cryptocurrencies.

At the time, Simplex was already working with both Binance and Kucoin, some of the biggest cryptocurrency exchanges in the world, to increase digital currency adoption.

Nimrod Lehavi, co-founder and CEO of Simplex, referred to the importance of this partnership by stating:

“Easy and fast credit card payments for mainstream users is a key factor in wider adoption of crypto in general. We’re thrilled to partner up with COTI and together enable a much better, fast and easy payment experience.”

Cryptocurrencies have gained increasing popularity as payment methods as exchanges like Binance, Crypto.com, and Coinbase have started launching their debit and credit cards, but there is still a long road ahead before they are available o the general public.

Partnerships such as the one between Simplex and COTI could pave the way for enterprises to take advantage of the benefits of crypto on their daily operations, increasing trust in crypto and incentivizing merchants to facilitate the transition from fiat.

COTI: Facilitating Global Payments

COTI is an enterprise-grade fintech platform built using distributed ledger technology that aims to meet the challenges of traditional finance by making use of new technologies and infrastructure.

The acronym COTI stands for “Currency of the Internet”, which summarizes the vision behind the project.

The company has partnerships with companies like Ernst & Young, Blackedge Capita, Lacanstar Group, Wave financial, and Base 15, which operate as both investors and advisors on the development of the platform.

The platform makes use of a Directed Acrylic Graph (DAG) instead of a blockchain-based storage solution, as well as a trust scoring system, meditation system, and currency exchange to achieve scalability, simplicity, cost-effectiveness, security, instantaneity, and price stability.

The platform uses the native token COTI, which has rapidly increase its value during the first 3 months of 2021 reaching an all-time high of $0.22 after starting the year at $0.04.

The post Apple Pay Users Can Now Buy COTI Via Simplex appeared first on Blockonomi.

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Source: https://blockonomi.com/apple-pay-coti-simplex/

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