Ayoconnect and Mastercard Develop Bank Account-Based Innovation and "Open Finance"

Platform open finance API Ayoconnect announced a strategic partnership with Mastercard, a global technology company in the payments industry. The partnership aims to modernize bank account-based payments and develop solutions together open finance in Indonesia.

Previously, Ayoconnect also played the role of bridging cooperation between Mastercard and five e-commerce platforms and digital wallets through the network open banking.

The two companies are currently developing a new solution that allows direct debits from consumers' bank accounts in a simpler and more secure method. This partnership leverages Ayoconnect's connectivity to the API open banking from the biggest banks in Indonesia.

Last year, Ayoconnect has launched a solution direct discharge cooperates with seven major banks in Indonesia, namely BRI, Bank Mandiri, CIMB Niaga, BNI, Danamon, Bank Syariah Indonesia, and Bank Neo Commerce to provide direct discharge which can be accessed via 1 API.

In the same year, Ayoconnect has also obtained a license from Bank Indonesia. It says Ayoconnect is the only player Open Finance in Indonesia who have the license.

Ayoconnect Founder & CEO Jakob Rost said that the key to accelerating Indonesia's payment ecosystem is collaboration between all sectors, industries and stakeholders.

"Earning the trust of Mastercard is a testament to our commitment to building layers of infrastructure that enable ecosystem interoperability open finance to provide a better, faster and safer digital payment experience," Jakob said in an official statement.

Apart from payment solutions, Ayoconnect and Mastercard will also collaborate in developing solutions open finance which can lead to better credit decisions and encourage financial inclusion. This solution will combine Mastercard's Open Banking and Data & Services capabilities with Ayoconnect connectivity.

Founded in 2016, Ayoconnect has grown to become the largest API ecosystem in Indonesia. They have developed more than 4 approved financial products.embed with around 200 institutional partners.

Everything will be fintech in time

One of the effects of the "tech winter" in Indonesia is that every company is increasingly thinking hard about being able to gain profits. Companies must be able to take advantage of financial services to better serve customers, retain them, and encourage more diversification of the company's business.

Jakob, through his presentation regarding Ayoconnect's business growth, also revealed that he believes that eventually all companies will become fintech companies. Ayoconnect is also aggressively expanding its market reach.

"In the future, we want to immediately expand the consumer segment in more specific markets such as agritech," he said.

Digital payments provide consumers with acceptable means of accessing financial services and transactions, and startups and other financial technology entities are driving the growth of e-banking. This method has become one of the drivers of a number of business sectors with advantages such as speed, accuracy, and access that can reach various levels of society

Based on Mastercard New Payments Index 2022 data, consumers in the Asia Pacific region are among the most enthusiastic digital payment users in the world. This is shown by 69 percent of the population using at least one digital payment method in the past year.

Statista's latest research also shows that the increase in digital payment transactions in Indonesia reflects an increase in people's digital financial literacy. The research also estimates that the number of digital payment users in Indonesia will continue to grow, with e-commerce and mobile payment increase by more than 45 percent and 18 percent respectively from 2022 to 2027.