1. Startups

Indepay Comes to Offer a "Social Commerce" Experience in Fintech Services

Just received funding from BEENEXT and T8 Capital Partners; launch tara.app for MSME players

The Covid-19 pandemic has prompted significant changes in people's behavior, from conventional to all-digital. Bank Indonesia recorded that the value of transactions with electronic money reached IDR 25,4 trillion in July 2021. That number increased 5% from the previous month which was IDR 24,1 trillion.

Meanwhile, Indonesia's payment system is said to be still in the early stages of development, 80% of existing bank accounts have not been fully digitized. Seeing this issue, Indepay is here to offer an open transfer platform designed to encourage the transformation of the digital payment industry using transfer technology between users real-time.

"We are building an Open API-based transaction platform by bringing banks closer to consumers to drive the transformation of the digital payments landscape by transfer account-to-account in real-time," wrote Indepay Co-Founder & CEO Rajib Saha.

Founded in July 2020, Indepay has a focus on revolutionizing the financial sector in Southeast Asia. The company is said to have had a thriving partner ecosystem built around member banks that makes transfers both as a consumer and a business efficient, at a low cost and leading to endless possibilities.

Intrinsically, this platform maps the mobile number with the customer's bank account as a unique payment identity for a faster & safer account-to-account transfer experience called Pay-ID. This system will empower users to build a digital reputation and help maintain security and approval-based control over their financial data.

Services based open finance In Indonesia, it is currently being developed. The issue is the same, because of the consumer's need for more seamless access to financial services. Ayoconnect, Xendit, Finantier, Brick are some of the names of startups playing in this realm; including one of them providing an API for the transfer or receipt of funds.

Next target

In the next three years, the company targets to digitize at least 100 million Indonesian customers and facilitate 1 billion transactions per month. Currently, office Indepay located in Jakarta, Singapore and Gurgaon, but the team admits that currently they only focus on the Indonesian market. Going forward, the company plans to expand to other countries in Southeast Asia, as well as India.

In terms of external funding, currently Indepay has been supported by BEENEXT and T8 Capital Partners. Without elaborating on funding details, Rajib said that his team was still in the process of closing this round with additional funds from several other investors.

BEENEXT Founder & CEO Teruhide Sato said, “We have invested in various startups fintech around the world, and we observe that the presence of digital interbank transfers is increasingly driving the growth of the digital economy in every country. For this reason, we are working with Indepay to build an open transfer platform in Indonesia, which connects all financial sector businesses, from banks, Payment Gateway companies, Switching and Settlement operators, to offer a very affordable and practical fund transfer experience.”

Indepay's open transfer platform positions itself as a digital payment option with experience social commerce interactive interface to facilitate faster transfers, payments and receipts of orders. This effort is expected to open up new opportunities for startups, companies fintech, brand, MSME actors, and micro sellers to jointly realize the concept of society cashless.

Focus on reaching business actors online

On September 17, 2021, Indepay officially launched the app "tara.app". Using Indepay's transfer platform, tara.app is a social interactive trading facility (social interactive commerce), which is intended for D2C business players, such as brands, micro merchants, warungs, and retailers.

Rajib Saha also revealed, “High payment fees and transfer fees are the main obstacles in developing the startup ecosystem in Indonesia. tara.app in collaboration with the Indepay team in Jakarta will be a disruptor in this industry. Our integration with various banks and financial institutions will open up exciting opportunities for Indonesia.”

Actually a similar concept is also offered by other players. For example Xendit with Xendit Business App and Midtrans with Payment Link service.

The presence of technology platforms such as Indepay is becoming increasingly crucial to encourage MSME-based economies such as Indonesia to carry out digital transformation. Several recent studies and research also show the increasingly widespread use of the internet and changes in user behavior towards online buying and selling activities on social media. This shows the increasing popularity of the activity social interactive commerce or interaction based trading online, either through short message applications or social media.

In the process, tara.app works by mapping the user's cellphone number with the bank accounts they have as a Unique Pay-ID. This Pay-ID can be used to make instant and secure transfers to other user accounts (Account-to-Account Transfer). Furthermore, the unique Pay-ID will build users' digital reputation and help maintain security standards, where users can have consent-based control over the financial data they provide.

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With tara.app, users don't have to install all the bank apps on their phone or remember different passwords and pins for each account. A unique Payment ID linked to their mobile number allows the transfer process to be more practical and secure, anytime and anywhere via one pintu.

On the other hand, this solution is also intended to help MSMEs to make their products easier to find online online, as well as supporting MSMEs with wider network coverage and community participation. This step aims to bridge the distance between merchants and banks through digitalization, so as to create an interactive trading experience (interactive commerce) through social channels in Indonesia. framework tara. app.

Indepay claims its solution as one of the pioneers in Southeast Asia. While other players interact in group networks, such as Facebook, Instagram, Google for Business, the platform offers a web-based solution, which can also be accessed from the tare app for better deals for consumers.

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