Strengthening Foreign Exchange Transfer Partners Becomes Instamoney's Strategy to Intensify Remittance API

Happen remittance, both from a business and user perspective, is still highly fragmented in Indonesia. From the user's perspective, the current players are dominated by banks with all the limitations they have, often making it difficult for users to send money abroad for their family and colleagues.

Meanwhile, from a business perspective, the remittance market is still very localized. This makes any forex company looking to enter and do the remittance business here require significant research effort and then translate it into a work plan.

“Instamoney's added value here is that we can provide instant remittance infrastructure plug and play efficient [API-based], as well as best practices so that international money transfer partners can focus on their commercial goals and make money transfers effectively and efficiently,” said Instamoney Director Mikiko Steven to DailySocial.id.

Instamoney is part of the Xendit Group which was officially established in 2018. Instamoney focuses on providing remittance APIs for three segments. First, for local remittance companies that are licensed by Bank Indonesia and want a digital touch transfer process.

Second, remittance companies from abroad looking for local partners. Finally, companies that require a fund transfer process in their business model.

“We are open to more partnerships and are currently looking for other partners who share our vision to simplify the remittance process for their end users.”

Instamoney business development

Wise (rebrand from Transferwise) is one of the first global partner partnered with Instamoney. Wise can serve customers in Indonesia who want to send money to 80 countries, including Australia, Malaysia, Singapore, Japan, United Kingdom, to China (via Alipay).

Wise makes the remittance market more competitive in terms of rates because it is claimed to be 2,5 times cheaper than rates offered by banks and non-banks. The transfer process is also faster within an hour. After Wise, the next global partner is MoneyGram which can operate in Indonesia.

MoneyGram users may be able to receive money from family and friends around the world directly into their bank accounts online near real time. Also, receiving money via GoPay and OVO electronic wallets.

“In the past year, the ability to receive money safely and comfortably at home has become increasingly important for many families. Now, through a partnership with Instamoney, customers in Indonesia have even more options in receiving the money from family and friends around the world they need to get essential products and services,” said Regional Head of South East Asia and Indo-China MoneyGram Vijay Raj Poduval in an official statement.

Mikiko refused to explain further the impact of the above partnership with the growth of successful remittance transactions facilitated by Instamoney. He only explained that the sending countries with the most recorded numbers on Instamoney were dominated by Malaysia, Singapore, the United States, and Australia.

According to him, in general, Indonesia has always been a market for remittances into Indonesia (inbound). However, according to Bank Indonesia statistics, since the pandemic there has been a downward correction for the first time in the last four years.

Quoting from BI data, the value of remittances in 2020 fell 17,6% compared to the previous year to $9,43 billion. Indonesia lost around $2 billion or around Rp29 trillion due to the pandemic. Previously, the transaction value grew in a row in 2017-2019, namely 0,85%, 25,26% and 4,2%.

In addition to strengthening the partner base of international and domestic money transfer companies that need Instamoney services, Mikiko said that his party is also actively collaborating on technology with other technology companies that can improve Instamoney's features and enrich the ecosystem. such as forex partners, digital KYC and others.

"We continue to improve our API for the development of our own business, partners and our customers," he concluded.

In Indonesia, remittance platforms that have been operating and have a license from Bank Indonesia include: