Social media giant, Facebook will be making an application for regulatory approval to get a go-ahead in launching mobile payments in Indonesia. The company will be partnering up with three other domestic fintech firms.
This initiative could be the very first service of its kind; Facebook Pay, the common payment service that the firm intends to launch in November. This service will enable the users to make payments across different platforms like Instagram and WhatsApp without quitting the application.
There had been earlier talks aimed at a partnership between Facebook and Gojek, a payments firm; however, sources have it that the firm is focused on the capitalizing of the Indonesian market; this is why it is making preparations for regulatory approval.
Three local companies that will be in this partnership include; Gojek's GoPay, LinkAja, which has its backing from Indonesia and startup, OVO, which is backed up by Grab from Singapore.
The assistant governor of Bank Indonesia, Filianingsih Hendarta, who is also the head of payment system policy, said that some Indonesia-based firms came to the regulator to inquire about a tentative approval of Facebook for payment partnership. The assistant governor added that there, however, is no formal application submitted apart from consultative meetings.
The Facebook spokesperson indicated that the firm has the intention of bringing such mobile payment to many more countries with the belief that it will open up massive opportunities for business growth.
Jason Thompson, OVO Chief Executive Officer, indicated that as a company, they are constantly looking for partnerships that will upscale cashless transactions, and Facebook is included.
The social media giants are eyes-open to make sure that they are expanding their business rapidly in the southeast part of Asia. Indonesia is the most populated (with 290 million people), and the country with the biggest economy in the region, it automatically becomes the biggest Facebook's market having more than 100 million users.
Apart from this, Facebook is as well holding talks separately with Gojek, Google from the Alphabet, and China-based JD.com.
In other parts of Asia, the firm has intentions to purchase the telcom unit of Indian conglomerate Reliance Industries Ltd, which has a value of billions of money, this is according to media reports.
Gojek, founded back in 2010, has a value of 10 billion US dollars; the firm has transformed from ride-hailing service to all in one app that offers online payment, among other services.
