How Payment Gateways Help Local Businesses Survive

The ongoing pandemic, coupled with the implementation of PPKM rules, has forced all business lines to respond more swiftly by formulating strategies to survive longer. Utilizing digital services is also the absolute answer that business people need to take.

For corporations, migrating to digital is not difficult because they already have the resources that can help the process go faster. The case is different for MSMEs, which are the backbone of the country's economy, with all their limitations, they are the ones who need the help of technological solutions the most.

One of the important aspects needed for a business to survive is to take advantage of payment gateway. midtrans is one of the players in this sector who wants to share the series of payment solution innovations they have developed since the pandemic.

In that regard, session #TuesdayStartup this time invited the Head of Marketing Midtrans Rezki J. Warni and Chief of Business & Operational Gramedia Digital George M. Souisa as speakers. Here's a summary:

Adaptive to market needs

Rezki realizes that the biggest challenge for digital transformation is changing habits. The pandemic has forced all parties, both companies and consumers, to adopt digital products.

“The challenge for business people is to maneuver quickly, but still be efficient in terms of Development and save costs. We see that there is potential that Midtrans can do to help," he said.

One innovation that has been released by Midtrans since the pandemic is PaymentLink. This is a simple link that business people can create via web dashboard or app mobile devices, then shared with customers via any channel, including WhatsApp, social media, SMS, too Email. Payment Link provides 24 choices of payment methods, ranging from debit cards, credit cards, e-money,virtual accountsand direct discharge.

Tia, Rezki's nickname, continued that Payment Link is a solution for all business scales because it is very simple to use. For MSME scale, this service is the right solution because it does not require extra effort for its development, especially for those who do not have an IT team.

"Our goal is to create an inclusive ecosystem for everyone because technology cannot be enjoyed by only a few, it should make it easier for businesses and ultimately consumers [who enjoy it]."

Now, Payment Link users increased by 105% during June 2020-June 2021. During the same period, transactions also increased by 20%. Three categories merchant which use this feature a lot are retail, groceries, and fashion, the majority of which have physical outlets.

The development of new innovations certainly needs to be accompanied by regular education. Tia explains in the group Gojek has carried out many educational initiatives so that more and more business actors areUpdate with the latest developments.

One that is currently being implemented is the Dictionary (Akademi Mitra Usaha by Gojek) which serves as a forum for community and communication. It includes a number of initiatives, such as the GoFood Partner Community, A Cup of Moka, Biznis Talk, and Midtrans Gathering. Each of them has a different target user.

Impact of implementing digital payment solutions

Gramedia Digital Chief of Business & Operations George M. Souisa said, Digital Gramedia pioneered since 2015 to answer the challenges in the printing world which is increasingly faced with the digital world. The pandemic is proof that digital acceleration is an absolute thing and needs to be encouraged for future strategies.

"Because we have been ready since four years ago [founding Gramedia Digital], we always try to adapt to digital developments and always be adaptive to stay relevant," said Alvin, George's nickname.

Gramedia Digital is one of the solution users payment gateway from Midtrans. Alvin admitted that many business improvements were also felt. For example, companies do not need to check one by one every incoming payment, from the consumer side, they are more flexible in choosing payment options that are already available at Midtrans.

“Operationally, there is no need for special employees to handle payments via digital channels. It takes at least one admin to make invoice etc."

At Gramedia Digital the most popular payment method is bank transfer. These conditions are different from the purchase eBook (only in Dutch at the moment), more popular e-money. When explored in depth, this difference is based on the different target consumers between buyers at Gramedia Digital and consumers eBook (only in Dutch at the moment). Buyer eBook (only in Dutch at the moment) tend to come from the younger generation.

Not only payment gateway solutions from Midtrans, Gramedia Digital also utilizes Selly's solution which is also powered by Midtrans for payment solutions needs at Gramedia outlets. Alvin admitted that Selly has been used for seven Gramedia outlets, in the future it will be expanded to more Gramedia outlets.

Selly is a specific service under the ecosystem Gojek for MSMEs to manage logistics, operations, to internal payments smartphone. Selly is for social sellers who use WhatsApp a lot as a sales channel.

Alvin admitted that with the application of digital payment technology, he was able to increase sales at Gramedia Digital by 80% globally year on year. This year, the company is developing its platform to become marketplace.

“We are preparing ourselves further in the future, assisted by the players payment gateway to simplify our business by utilizing technology. we are develop to be marketplace this year," he concluded.