Under the auspices of Xendit Group, Instamoney Provides API Services for Remittances

Instamoney is an API (Application Programming Interface) service provider to help a company deliver services fintech in the form of remittances through the Remittance API, loans through the Escrow API, and investments through the RDL (Lender Fund Account) API. Business-wise, the startup is part of the platform developer payment gateway Xendit Group.

Currently, Instamoney services have obtained a license from Bank Indonesia through PT Syaftraco. It is known, previously CV Syaftraco was a fund transfer company registered with BI with the number 11/5/DASP/2 dated March 4, 2013. Then in 2018, the company was acquired by Instamoney and turned into a limited liability company under Xendit.

Official Instamoney formed on 7 February 2018 with Tessa Wijaya as Founder & CEO. It is known that at this time he has also served as COO of Xendit since 2016. Before taking up residence in the business fintech, Tessa has 7 years of career experience in various private equity firms, including QUVAT, Fairways, and Mizuho.

"Xendit Group understands that for businesses to grow, they need more than just a platform to accept payments. Aiming to provide holistic payment solutions, Xendit Group companies build technology-based products and create one-stop solutions for corporate financial needs," said Tessa .

Value proposition

In Indonesia, there are already several API providers fintech with various specialties. For example, Ayoconnect, focuses on presenting various payment transaction modules. The latest is also available Finantier, featuring identity and payment management modules. While those that focus on providing an API for remittances exist Wallex Technologies.

Asked about the uniqueness that they are trying to bring, Tessa said that the API they present has a relatively process real-time. For example, for remittances, it is only under 60 seconds -- thus enabling implementers to make operational and cost efficiencies. They are also trying to adapt the global standardization for their API system, oriented towards Silicon Valley, hopefully making the integration process easier.

Instamoney's API service is targeted at three segments. The first is for remittance companies in Indonesia that already have a permit from BI and want the process of transferring funds through a digital touch. Second, overseas remittance companies looking for local partners. And thirdly, companies in general require a fund transfer process in their business model.

Collaboration with TransferWise

Recently, the London-based remittance platform "TransferWise" officially launched its presence in Indonesia. Allows users to send/receive funds from/to overseas in Rupiah. In the system, they apply the API provided by Instamoney, as well as cooperating with them as strategic partners because TransferWise does not have a license from BI.

“Instamoney is collaborating with Transferwise to provide fast, safe and easy fund transfer services through digital applications at a more affordable cost for the people of Indonesia. As a licensed fund transfer company in Indonesia, Instamoney provides world-class remittance API and technology that is connected to partner banks so that the fund transfer process can run smoothly," said Tessa.

In its operations, Instamoney cooperates with local banks and other financial institutions as strategic partners. This allows many transactions to be carried out at the same time, equipped with a risk prevention/mitigation system, by recognizing patterns when transferring funds.

"There are a lot of remittance and fund transfer activities in Indonesia, but most of them are still considered conventional. We want to help change that with our latest products and technology," added Tessa.

He said that every month Instamoney has served hundreds of thousands of transactions from financial companies that are its clients. Even during the pandemic, the available data shows an increase due to increasingly massive digital adoption.

"In the next year, we will still focus on understanding more deeply the need for fund transfers and improving the quality of products that are relevant for companies in Indonesia. We also want to establish even better relationships with regulators and support programs and their policy is to improve the fund transfer industry in Indonesia," concluded Tessa.

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