Great Digitization Potential, LinkAja Starts Seriously Working on the B2B Segment

In the midst of fierce competition in the electronic money business, LinkAja has begun to work seriously on the B2B segment to complement B2C services. This opportunity was initially taken because LinkAja has a mandate to assist the digital transformation process in the ecosystem of its shareholders, the majority of whom are state-owned companies, which have great potential.

Business Solution Service LinkAja can digitize the complete financial ecosystem in the corporate business order to service users (end-consumer). There are seven solutions currently offered, ranging from Funding (Cash Disbursements), Cash Collection (Cash Collection), Payment Digitization (through QRIS, merchant applications and others), Ecosystem Digitization, and Advertising Services.

"Departing from there, we seek aspirations and pain points of them [shareholders]. Then, looking for relevant solutions, the results are seven solutions that we offer, "explained the Director of Operations of LinkAja Widjayanto in a press conference, yesterday (16/12).

As of this year, the growth of B2B users has increased by more than 70% on a YOY basis. Around 200 partners from large corporations in Indonesia have adopted Business Solution solutions, such as Pertamina, Bank Mandiri, Bank BRI, Telkomsel, Sampoerna Retail Community (SRC), Blue Bird, and others.

With the presence of LinkAja in the Blue Bird ecosystem, now the drivers have been digitized and become regular users of electronic money. They use LinkAja for daily transactions, starting from purchasing credit, fuel, e-toll, and others. The result, seen from the volume disbursement increased by more than 800%, transactions disbursement increased by more than 700%, and active users of drivers more than tripled in the Blue Bird ecosystem.

Another example of digital adoption by retail chain grocery store partners at SRC. Since February 2021 take advantage of LinkAja's B2B solution, they have increased significantly in terms of digitizing the SRC financial ecosystem, with volume cashless growing more than 60% per month and cashless transactions growing above 70% per month.

SRC utilizes a Cash Collection solution to reduce the complexity of collecting cash payments and minimize the risk of cash handling in the field team, making it suitable for implementation for companies that have supply chain systems. With iGrow, LinkAja also provides access to productive capital for B2B partners in need.

Next year, Widjayanto said that his party will be more aggressive in expanding B2B users, in line with the company's mission to encourage the acceleration of digital finance in Indonesia. It is claimed, the company has succeeded in digitizing more than 400 thousand MSMEs in the ecosystem of shareholders and strategic partners.

"We are targeting a 10-fold increase from grocery stores and from merchants we can add one million from the B2B ecosystem," concluded Widjayanto.

LinkAja's overall performance

Not only explaining about its B2B, LinkAja also boasted about its achievements this year. Widjayanto said that until November 2021, the use of QRIS LinkAja had reached more than 1,3 million merchant, with a total of 2,3 million registered merchants. Furthermore, there are more than 80 million registered users, around 5,9 million of whom are LinkAja Syariah. Then, the growth of the platform rose 13 times, and has 1,3 million cash in and cash-out points.

The increase in the number of LinkAja Syariah users occurs because the company is targeting the sharia community, working with connected partners, such as Muslimat NU, Bank Syariah Indonesia, and others. As a result, as many as 5,9 million registered sharia users.

"We are physically present in 476 cities because we believe MSMEs must be accompanied, so there are steps to cooperate with hyperlocal entities. With this, we are committed to advancing localeconomy, "added LinkAja's Marketing Director Wibawa Prasetyawan.

Although there was no further mention regarding the use of transactions on LinkAja, it was revealed from LinkAja's internal data, that there was a trend of different in each layer of the city. In first-tier cities, for example, the majority of users know LinkAja from social media and online media; come from the age group of 20-24 years; and mostly use LinkAja for transactions at gas stations and bank transfers.

While in tier two cities, the majority of users know LinkAja from offline merchant and supermarket; user segment among 35-40 years old; and most often use LinkAja for essential needs, such as traditional markets, PAM payments, and credit.

“In a third-tier city there is a strong development here, the majority of users come from the age group of 25-30 years, they know LinkAja from social media and offline mechant. Most transactions are for essential needs.”

Another interesting thing that was also conveyed was that last June LinkAja obtained a license e-wallet from Bank Indonesia than before electronic money. The presence of this license will make LinkAja more flexible in making payment transactions that can be sourced from any source of funds, not limited to LinkAja's balance.

Next, pocketing the license e-retailers in October. Wibawa said, this license opens up opportunities for LinkAja to sell more variations of digital products. Previously, the company took advantage of the presence of third parties in providing these solutions. Game Vouchers become one of the company's targets, given the huge business potential in Indonesia.