Pushing B2B Digitalization, Paper.id and VISA Announce Strategic Collaboration

Recently, VISA Indonesia and Paper.id establishing a strategic partnership through the appointment of Paper.id as a business payment solution provider (BPSP) partner. As a platform that offers online billing and payment solutions for SMEs, Paper.id is said to have the largest transaction volume in Indonesia.

To DailySocial.id, CEO & Co-Founder of Paper.id, Yosia Sugialam revealed that this strategic collaboration had been established since 2021. However, it was only this year that the two parties decided to officially announce this strategic collaboration. The cooperation that was carried out for the first time was an option for payment, which form was still prototype at the end of 2021.

"The company's hope through this strategic collaboration is to be able to encourage the digitization of business-to-business transactions (B2B) by card-based. Currently the penetration of credit card use is still very large gapfor B2B digitization," said Yosia.

When asked about the opportunity for VISA to invest in Paper.id, Josia was reluctant to comment. However, he emphasized that Paper.id will launch other strategic collaborations, starting with financial institutions, banks and related parties. According to him, currently awareness users who transact with VISA on the platform are quite good. Furthermore, Paper.id and VISA will push the rate awareness/reach higher to target users.

"This is part of a series of collaborations that Paper.id and VISA are carrying out to provide innovative and helpful business payment solutions, not only companies, but also MSMEs. This collaboration will make it very easy for business people to use credit cards, because they will definitely be accepted anywhere just. Cashflow so it's anti-congestion," he explained.

As a BPSP provider partner, Paper.id helps process business payments to business actors beg using a credit card within the VISA network. This payment can be made though beg/vendor does not accept credit card payment options or does not provide EDC machines. Business actors will also get an additional due date of up to 45 days, because credit card bills are not paid immediately by the card holder, but are paid according to the date of the credit card bill.

"Paper.id has grown to become VISA's largest BPSP partner based on transactions in Indonesia. Paper.id platform users have the opportunity to further streamline company spending while making transactions on the VISA network throughout the world, with simple processes and taking maximum advantage of our synergies," said President Director of VISA Indonesia Riko Abdurrahman in a separate statement.

VISA Investment in Indonesia

VISA has worked with local partners to enable digital payments and promote financial inclusion. Starting from fintech services to other financial platforms, VISA plays an active role in supporting financial services and payments in Indonesia.

For your information, VISA is a global payment technology company that has been operating in Indonesia for more than 30 years. VISA said it has played an important role in the country's digital payments landscape.

VISA has also made strategic investments in startups in Indonesia with the aim of encouraging digital payment innovation. As the digital economy grows rapidly in Indonesia, VISA sees the importance of startup involvement in driving this industry.

Some of the investments that VISA has disbursed in Indonesia include the Series F funding round Gojek in 2019. VISA also provided a $5 million investment to a tax SaaS startup OnlineTax in 2021. Then, in 2020 VISA was also involved in funding a startup from Singapore called nium, (formerly InstaRem) which provides remittance services in 90 countries. Nium operated in Indonesia at the end of 2019.

At the end of 2022, startup open financeBrig announced a collaboration with VISA, a world leader in digital payments, to give lending institutions access to alternative data sources and scores from debit and credit card transactions from the VISA network. This collaboration aims to help expand financial access in Indonesia.