Digital-payments company Visa has invested an undisclosed amount into Southeast Asian ride-sharing and services startup Go-Jek giving it a foothold in the company’s payments platform.
The two companies say they will work together to provide greater options for cashless payments and more seamless experiences for consumers across Indonesia and Southeast Asia.
Indonesian-based Go-Jek, which has since launched in Vietnam and Thailand, has created Go-Pay which is one of the leading digital-payment providers in Indonesia and established itself as a regional rival to GrabPay
“The partnership will see Go-Jek and Visa collaborating on innovative payment solutions for digital-first consumers and Southeast Asia’s unbanked and underserved population,” the two companies said in a statement.
“Financial inclusion in Southeast Asia continues to be an urgent and important issue. The vast majority of Indonesia’s transactions are still cash-based and the adoption of digital payment services is as low as one-in-four users in markets like Vietnam. Addressing this opportunity could increase Gross Domestic Product levels by between 9 per cent and 14 per cent, even in relatively large Southeast Asian economies,” the statement said.
Visa regional president Asia Pacific, Chris Clark said Visa and Go-Jek share common objectives. “We both want to make everyday life more convenient, whether it’s how people move around town in Southeast Asia’s fast-growing urban areas, or making it easier for people to pay and be paid all over the world. We also have a shared goal to bring formal financial services to the unbanked and underserved, including micro, small and medium businesses. Through this partnership, we will explore ways to leverage the power of Go-Jek and Visa’s networks to expand financial access in Southeast Asia.”
Go-Jek president Andre Soelistyo said Visa’s investment in the company is an endorsement of its business model.