PayPal joins Facebook, Google, Tencent and others as investors in Indonesian online commerce startup Gojek.
This new investment will support Gojek’s mission to boost Southeast Asia’s digital economy, with a focus on supporting payments and financial services in the region.
With digital payments adoption primed to accelerate exponentially, the resources of some of the world’s leading global tech businesses will be combined with the local focus and technology of Gojek to benefit millions of businesses and people across Indonesia and Southeast Asia.
Gojek’s payments business, GoPay has long been focused on increasing access to the digital economy among micro, small and medium enterprises (MSMEs), the majority of which continue to rely on cash to operate, due to the region’s large unbanked population.
The latest influx of funding will support more of these businesses as they seek to digitize further, from micro-merchants selling wares on the street side up to large businesses looking to strengthen their digital payment infrastructure.
Since launching its app in 2015, Gojek has digitized hundreds of thousands of merchants on its platform, providing them with access to more than 170 million users across Southeast Asia.
Its payments business processes billions of transactions each year and owns the largest e-wallet in Indonesia.
A large part of this is driven by GoFood, the largest food delivery service in Indonesia, as well as the expansion of GoPay into other sectors both within and outside the Gojek ecosystem.
“This is great validation that the world’s most innovative tech companies recognize the positive impact Gojek is making in Indonesia and the whole of Southeast Asia. By working together, we have the opportunity to achieve something truly unique as we aim to help more businesses to digitize and ensure that many millions more consumers are enjoying the benefits that the digital economy can bring.”
Gojek Co-CEO, Andre Soelistyo
Indonesian GoPay Customers Gain Access to Over 25 Million PayPal Merchants
As part of its commercial agreement, PayPal’s payment capabilities will be integrated into Gojek’s services and the two companies will also collaborate to allow customers of GoPay, Gojek’s digital wallet, to gain access to PayPal’s network of more than 25 million merchants around the world.
“Southeast Asia is at an inflection point in digital adoption that creates new opportunities to deliver financial services to previously unbanked merchants and consumers. We could not be more excited about entering into this strategic relationship with Gojek to expand access and provide new experiences for our collective customers in this dynamic market and around the world.”
Farhad Maleki, Head of Corporate Development and Ventures for APAC at PayPal
Indonesia – A Growth Market
The Indonesian online commerce market benefits from a youthful population with an average age of 30.5 years that engages in social commerce with over half of online commerce taking place on mobile devices.
Indonesia has been considered one of the fastest-growing ecommerce markets despite geographic challenges and low internet penetration.
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