Who Are The Major Players In Fintech: 7 Largest Fintech Company in Indonesia

Indonesia is facing the advanced development of its financial sector with the rise of fintech companies. According to the United Overseas Bank (UOB), PwC, and Singapore Fintech Association (SFA), there are 785 fintech companies or fintech startup established in Indonesia at the end of 2021.

The rise of these companies is triggered by the research from AFTECH, revealing that most fintech users are between 25-35 years old and their prime age. The covid pandemic that limits people's mobility is also involved in increasing digital transactions, creating a golden chance for fintech companies to reach their peak. From 785 fintech, several companies are becoming major players in fintech. Who are they?

Who Are The 7 Major Fintech Players In Indonesia 2022

1. GoPay

GoPay is one of the features of Gojek, an Indonesian company specializing in online transportation. GoPay was established as the solution for customers who want an easy and quick alternative for transactions. GoPay often spoils their loyal customers with cashback and coupons that they can use for various transactions besides paying the online transportation fee, such as purchasing foods and sending their packages.

Due to these offers and features, GoPay has become one of the major players in fintech sector, reaching 58% of users, according to research by Ipsos.

2. OVO

Back in the day, GoPay and OVO were the only two powerhouses of fintech in Indonesia before other companies rose. OVO, founded by Lippo Group, is the first finance-tech business unicorn with an estimated valuation of US$ 2.9 Billion. OVO is a digital payment that customers can use for any transaction.

3. Modalku

Modalku is a fintech lending company that offers loans for customers who need additional funds for their business. This company focuses its loans on small to medium-scale enterprises (SMEs) that have operated for at least six months. Modalku also has several requirements before they give the loans with a flexible tenor to SMEs, making it easy for SMEs to pay the debt on time.

4. Xendit

One of the bank’s customer problems is that they have to pay more fees when they want to send money to different bank accounts. Xendit comes as a solution as people can transfer money to different banks without the need to pay the additional fee. Xendit is one of the most famous fintech companies in Southeast Asia. Last year, a report reported a cumulative transaction of more than US$12 Billion with 150 million transactions per year, mainly in Indonesia and the Philippines.

5. Kredivo

Another fintech lending company that became one of the major players in fintech is Kredivo. Frankly speaking, Kredivo is the pioneer of fintech lending in Indonesia. With only ID cards and selfies, customers can enjoy access to small loans with flexible tenors.

6. Ajaib

If we look at a list of major players in the fintech ecosystem, most of them are lending or digital payment companies. This one is different since Ajaib provides a digital platform to make investments with cryptocurrency. Currently, Ajaib is the seventh company to become a unicorn startup in Indonesia after managing to gain valuation of US$ 243 million.

7. Akulaku

Established in 2016, Akulaku is the first e-commerce company to offer customers loans. The service doesn’t stop there’ Akulaku is also the first e-commerce that provides an installment feature so customers can shop even if they do not have enough money.

These fintech companies becoming major players in Indonesia’s fintech ecosystem is not without reasons. With the support of advanced technology development, they managed to provide financial services that are most needed by customers in Indonesia, allowing people to make financial transactions anywhere and everywhere they want.

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