Japanese enter e-cash and online lending market in Indonesia

Japanese enter e-cash and online lending market in IndonesiaIndonesia, a country where millions of people don’t have bank accounts and therefore cannot pay with other means than cash, is stepping up its e-money ambitions. In a latest move, a Japanese lease and finance company, Tokyo Century, entered the market through a partnership with local retail conglomerate Lotte Group in order to develop a digital payment and lending business for the country.

The Japanese invested about 13 billion yen ($115 million) for a roughly 20-per cent stake in an e-cash unit of Lippo Group, whose operations comprise department stores, shopping malls, hospitals and various other businesses.

Lotte Group already made a full-scale entry into the e-cash business in summer his year by launching a smartphone-based service that lets users shop with e-cash and accumulate shopping points. The service, called OVO, is expected to attract 8.5 million users by the end of next year, which seems to have made a business case for Tokyo Century.

Tokyo Century and Lippo Group will also establish a consumer loan joint venture by the end of the current fiscal year through March and work toward developing a new consumer credit business model for Indonesia.

Just around 40 per cent of Indonesians have bank accounts, and fewer than en per cent of them have a credit card.

Tokyo Century aims to create a mechanism that makes it possible to determine OVO users’ creditworthiness through big-data analysis of their e-cash and shopping point usage. The Japanese company aims also to invest in a Lippo Group online shopping unit, gaining a foothold in payments for online retail.

 



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Indonesia, a country where millions of people don’t have bank accounts and therefore cannot pay with other means than cash, is stepping up its e-money ambitions. In a latest move, a Japanese lease and finance company, Tokyo Century, entered the market through a partnership with local retail conglomerate Lotte Group in order to develop a digital payment and lending business for the country. The Japanese invested about 13 billion yen ($115 million) for a roughly 20-per cent stake in an e-cash unit of Lippo Group, whose operations comprise department stores, shopping malls, hospitals and various other businesses. Lotte Group already...

Japanese enter e-cash and online lending market in IndonesiaIndonesia, a country where millions of people don’t have bank accounts and therefore cannot pay with other means than cash, is stepping up its e-money ambitions. In a latest move, a Japanese lease and finance company, Tokyo Century, entered the market through a partnership with local retail conglomerate Lotte Group in order to develop a digital payment and lending business for the country.

The Japanese invested about 13 billion yen ($115 million) for a roughly 20-per cent stake in an e-cash unit of Lippo Group, whose operations comprise department stores, shopping malls, hospitals and various other businesses.

Lotte Group already made a full-scale entry into the e-cash business in summer his year by launching a smartphone-based service that lets users shop with e-cash and accumulate shopping points. The service, called OVO, is expected to attract 8.5 million users by the end of next year, which seems to have made a business case for Tokyo Century.

Tokyo Century and Lippo Group will also establish a consumer loan joint venture by the end of the current fiscal year through March and work toward developing a new consumer credit business model for Indonesia.

Just around 40 per cent of Indonesians have bank accounts, and fewer than en per cent of them have a credit card.

Tokyo Century aims to create a mechanism that makes it possible to determine OVO users’ creditworthiness through big-data analysis of their e-cash and shopping point usage. The Japanese company aims also to invest in a Lippo Group online shopping unit, gaining a foothold in payments for online retail.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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