DANA E-Wallet Service is Officially Present, Emphasizing the "Open Platform" System

Digital wallet service DANA, joint venture Emtek Group and Ant Financial, officially available to the public in beta. At the beginning of its existence, DANA carried out the system open platform, so users don't need to download the app separately.

This service has been embedded in partner applications and can be used directly by users. However, it is possible for DANA to launch its own application, although the realization has not been disclosed.

"Compared to similar players, most of them are closed loops so they cannot leave the ecosystem. When users are registered with DANA, all their data will be stored safely and can be accessed.carry over to other applications," said DANA CEO Vincent Iswara, Wednesday (21/3).

Apart from embracing open platform, he explained that DANA also uses machine learning which can analyze user consumption patterns based on their transaction track record. This technology is used as an automatic authentication step, so users do not need to go through the OTP process manually by entering the verification number sent via SMS or email.

They believe that such a method makes success rate up to 90% with loss rate can be reduced to 1%. Manual OTP method claimed success rateit only reaches 50%-70% with drop off rate 30% -50%.

He gave an example, when users have read the habit of buying credit once a week. Then DANA will not ask for reconfirmation by entering the OTP code. However, if the same user suddenly buys credit up to three times a week, the system will ask to enter the OTP code.

"Through this analysis, we want to make DANA a safe and smart digital wallet. Generally, existing platforms always need OTP, but this is not optimal because it can cause drop off rate up to 30%-50%."

Other latest technologies are also embedded in the DANA system, such as facial recognition to facilitate the authentication process automatically outside the method via SMS.

Want to be a top three player

Despite being new, Vincent targets DANA to become the top three players by the end of this year. The strategy that will be carried out is through the application of large partners that he has collaborated with. At least, DANA wants to capture a market share of around 10%-20% of the total payment options available from partner applications.

"From fellow merchants with large user populations from Bukalapak and BBM, it is possible that we can attract large numbers of people in a short time."

It will also increase the number of partners in order to increase the use of DANA. As of now, DANA is available on BBM and Bukalapak, with a total of 40 partners engaged in various business segments. It's just, process roll out The DANA feature will be carried out in stages starting from today (21/3) until the end of March 2017.

To guarantee transaction security, DANA has also obtained a PCI DSS (Payment Card Industry Data Security Standard) certificate. This certification is a security standard commonly used by financial companies to ensure the security of financial transactions via debit and credit cards.

DANA also takes advantage of user data security by using a data center (Tier III and IV) and data recovery based in Jakarta and Cibitung.

The features that DANA can serve include purchasing credit, electricity bills, telephone bills, PDAM bills, BPJS, installments, and transferring funds between users. Whereas top up Funds in BBM still use a Virtual Account (VA) to transfer funds.

To support its ambition as a top three player, DANA is preparing to implement non-cash payments for the offline segment by utilizing QR code technology. The plan is that the company will cooperate with traditional warungs as partners. The plan will only be realized after Bank Indonesia makes standardization rules for payments using QR codes which are still being discussed.

"We will continue to introduce new technologies, all of which are done in-house. In our team, the ratio of engineers dominates around 70%-80%."

In order to capture more talent, DANA will expand to new locations. Currently, DANA has offices spread across Jakarta, Bandung, Bali, and Surabaya. For the digital wallet business operations, DANA utilizes a license from PT Espay Debit Indonesia, which was acquired by Emtek last year.