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Entering Year 2, LinkAja Sharpens Financial Solutions for MSMEs

LinkAja claims to have 71 million registered users and 1,1 million MSME partners spread across second and third tier cities

LinkAja will intensify more financial solutions for merchant MSMEs in order to be able to move up to the second grade. One of the initiatives that will soon be carried out is to distribute working capital loans through iGrow, a startup which has company acquired last April.

LinkAja CEO Haryati Lawidjaja said, MSMEs were the sector most affected during the pandemic, even though this sector was the backbone of the country. Therefore they need working capital assistance so that they can survive. Not only with iGrow, LinkAja also attracts shareholders who are engaged in the financial industry to enter into lending.

As of now, LinkAja is collaborating with more than 1,1 million MSMEs, an increase of 104% compared to the previous year. The majority of MSMEs are engaged in the super ultra micro market in second and third tier cities, according to the company's focus area. They also partner with more than 100 financial industries that provide various digital financial solutions for both consumers and businesses.

"Currently we are still providing payment products, in the future we are targeting financing," he said in a virtual press conference (30/6).

On the same occasion, LinkAja also revealed that the registered users on its platform reached 71 million people, an increase of 43%. While the LinkAja Syariah Service has more than 3,5 million people. A total of 74% of the total users came from second- and third-tier cities.

As a payment application that plays in essential and productive types of transactions, LinkAja is present at various points. For shopping purposes online, they have partnered with more than 7.500 online marketplace, 400 thousand merchant national, and 750 traditional markets. Then, provide more than 1 million access cash in and cash out to the public, in the form of bank channels, modern retail, to digital financial services.

In the transportation sector, LinkAja can be used in more than 240 modes of transportation, such as KRL, Bluebird Taxi, Grab, Gojek, to local transportation in various regions. Well Grab and Gojek has officially become a shareholder of LinkAja, so you can use LinkAja balance to pay for transportation and order food.

The company also revealed that it processed 1,4 billion transactions over the past year. Unfortunately, it is not stated further that the contribution comes from which type of payment in the sector. Instead, the company uses the results of a survey conducted by Kadence International in May 2021 regarding which features are most used by MSMEs.

Respondents said that they mostly use LinkAja to buy credit and internet quota (82%), transfer balances to bank accounts (76%), withdraw balances to bank accounts (57%), and PLN payments (34%).

"This shows the proper function of LinkAja as an application for payment for essential needs in users' daily lives."

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Haryati continued, LinkAja does not only focus on consumer and MSME applications for digital financial solutions, but also plays in the enterprise realm for various solutions.

As, cash collection (cash handling risk, real-time reporting, and non-cash payments); incentive disbursements (thaw real-time, integrated reporting, and flexible use cases); and cross sell & advertisement (maximizing product reach using appropriate platforms). Enterprise partners that have taken advantage of LinkAja's solutions are Gudang Garam, SRC (Sampoerna Retail Community), and Kospin Jasa.

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