After Malaysia, Xendit Will Continue Regional Expansion
Over the past year Xendit has processed more than 200 million digital payment transactions in Indonesia with a value of more than $20 billion
After officially entering Malaysia, startup payment gatewayXendit will continue its next expansion to a number of countries in Southeast Asia in order to realize the ambition to be the leading player in this segment. Malaysia is Xendit's second expansion after entering the Philippines since 2020.
“We are proud of our product. Our mission is to develop this product to various ASEAN countries. IPO is not a discourse now but one day. The focus for 2023 and the next few years will still be regional, wanting to bring products from Indonesia abroad," said Xendit Co-founder and COO Tessa Wijaya. mediagathering, Thursday (12/1).
It's just that, Tessa was reluctant to explain in more detail the strategic plan regarding the next country being explored. He explained that there were a number of strategic reasons behind the company's decision to choose Malaysia as the second country it explored, including the reason for choosing Payex as its local partner.
First, the neighboring countries have similarities in the preferences of the payment method chosen. One of them is scanning the QR code which is now increasingly popular in Malaysia, the same thing is happening in Indonesia with the presence of QRIS. This condition validates that the technology that has been built by Xendit in Indonesia can be brought there so that there is an equal distribution of payment gateway solutions between MSMEs in Malaysia and Indonesia.
Second, from Payex itself, injected startup Xendit, is a similar company that was just established two years ago. This startup focuses on providing payment gateway solutions for MSMEs, in line with Xendit's mission to support MSMEs by providing digital payment solutions in Southeast Asia.
This opportunity opens up many potential synergies that can be carried out to develop MSMEs there as early as possible so they can grow together. "Finally, the most important thing is they have corporate culture same with us. We attach great importance to it because for example having a harmonious culture will make it very easy to develop existing ideas.”
For the record, this expansion to Malaysia is a follow-up to the investment announcement from Penjana Kapital for Xendit in 2021, through the National Penjana Fund program. As its first strategic move domestically, Xendit has announced an investment in local fintech player Payex – a Bank Negara Malaysia licensed payment gateway provider. No mention of the amount of funds provided from Xendit.
On the same occasion, the company as a group also announced its business achievements for the past year. It is said to have processed more than 200 million digital payment transactions in Indonesia with a total transaction volume value of more than $20 billion (around Rp. 300 trillion). This figure is up 30% year-on-year compared to the previous year.
Meanwhile, the number of active merchants served by the Xendit Group has reached 3.500 business actors, consisting of 70% MSME merchants and 30% companies. In terms of features, the company has made a number of improvements to increase merchant satisfaction.
Among other things, providing periodic payments (recurring payments) to make it easier for merchants to pay via credit card, e-wallets, regular direct debits. Then, updated authentication enhancements to assist merchants, accept credit card payments securely, and e-wallet tokenization to create a more convenient payment flow for customers and increase payment success rates
From internal data, it also describes the trend of digital payments in Indonesia to describe the frequency of use of Xendit Group services by merchants. These findings are:
1.Virtual Account is the most popular payment method. Of the 200 million transactions processed, 36% of them were Virtual Account (VA) transfers. Furthermore, the use of electronic money and credit cards ranks second and third as the most popular payment methods at Xendit merchants.
2.Paylater records 10x growth. The use of paylater payment facilities is increasingly in demand by consumers, as evidenced by the volume of payments which increased by 10 times, followed by credit cards (6 times), electronic money (5 times) compared to the previous year.
3. The tourism and entertainment sector has recovered significantly after the pandemic. Xendit Group recorded the highest growth in the tourism sector (181,4%), followed by entertainment — Gaming, show tickets, tourist attractions (132,5%), and restaurants (68,4%). These sectors experienced a spike in transactions during November-December 2022, indicating that consumers are returning to spending money for entertainment and recreation purposes after the end of the pandemic.
4. The highest transactions were in the service business sector. Of the many Xendit Group merchants, data shows that the sectors that recorded the highest frequency of transactions were services (96 million transactions), financial services (61,3 million transactions), and digital products — game vouchers, e-books (56 million transactions). .
5.Use of QRIS continues to increase. During 2022, the Xendit Group has facilitated more than 20 million transactions with a volume of $150 million (around IDR 2 trillion). The total transaction volume increased by 17,25% from the previous year.