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Ant Financial Services Group, an affiliate of Chinese Alibaba Group, has entered into a joint venture with Elang Mahkota Teknologi (Emtek) to provide digital payment services in Indonesia.
As part of the joint venture (JV), both the companies will initially introduce a new payments platform on BBM, the BlackBerry-owned messaging service with about 63 million users in Indonesia.
Ant Financial, which has experience in delivering payment and other financial services primarily through Alipay app in China, intends to replicate the same in Indonesia, the third-largest country by population in Asia.
The latest JV supports Ant Financial's strategy of geographic expansion outside China and to serve two billion users worldwide by 2026. Earlier, it expanded its footprint in Thailand, South Korea and the Philippines by signing deals with Ascend Money, Kakao Pay Corp and Mynt, respectively.
The Indonesian media firm Emtek will hold a 61% stake in the JV. Earlier in June 2016, Emtek entered into a strategic alliance with BlackBerry to provide cross-platform BBM users with access to enriched content and services.
The Indonesian mobile payment market is expected to record a CAGR of 72.3% from 2017-2021 to reach US$ 14,465 million in transaction value terms by 2021, increasing from US$ 1,642 million in 2017. In 2016, the market registered a growth rate of 88.9% over 2015, to reach US$ 893 million.
To know more and gain deeper understanding of mobile payment industry in Indonesia, click here.
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