Virgo's Efforts to Present a Value Proposition Amidst the Fierce Competition of Digital Payment Platforms

The digital payment industry in Indonesia has experienced tremendous growth. One of the most significantly used services is, e-money (server-based), providing an alternative to traditional cash-based transactions, enabling users to make payments easily and securely through digital channels.

Multiple platforms e-money have emerged as major players in the Indonesian market including GoPay, OVO, ShopeePay, LinkAja, and Dana --- although there are dozens of other platforms that are also operating and have obtained licenses from Bank Indonesia. These platforms offer a variety of services besides simple transactions, including bill payments, topping up pulses, transfers between users, shopping online, and even investment options.

One of the platforms e-money who want to present integrated services is Virgo. Partnering with Alfa Group, Virgo wants to offer easy payment through the application for all users.

To DailySocial.id, CCO Virgo Viko Gara revealed the company's plans for this year.

Featured feature "Top Up Return"

Virgo, which was developed by PT Capital Net Indonesia, has been around since 2021. Since its presence, Virgo claims to have bridged cash users to switch to non-cash with the "Top Up Change" feature.

The idea to launch this feature was initiated by the fact that currently 90% of retail transactions are still carried out in cash, even after going through the pandemic. Though penetration smartphone in Indonesia it has reached 89% and digital transactions have grown more than 2x during the pandemic, based on data from the Ministry of Communication and Information for 2021.

"From there, Virgo was inspired to become a bridge for customers who use cash to switch to non-cash through the Top Up Returns feature in partnership with Alfa Group (Alfamart, Alfamidi, Dan+Dan, and Lawson) in realizing its commitment to be part of the pioneers of a new movement. going to cashless society in Indonesia," said Viko.

Virgo allows Alfamart, Alfamidi, Dan+Dan, and Lawson customers to make payments with cash and receive change in electronic money, by asking the cashier to enter their shopping change into the Virgo application. Cash change (maximum IDR 99.999) can be received in the form of a Virgo balance via Top Up Change.

For Alfagift application users, they can link their Virgo account to an Alfagift account as a payment method. Thus, the change that has been collected in the Virgo account can be reused for shopping on the Alfagift application.

Targeting tier 2 cities

Asked about what differentiates Virgo from other platforms, Viko emphasized that apart from having the superior features, they also have uniqueness with a focus on targeting second-tier cities in Indonesia. Currently, the most Top Up Return transactions in Indonesia are in areas such as Rembang, Sidoarjo, Jember, Klaten and Bekasi.

Although major cities in Indonesia have made significant progress in adopting digital payments, the potential for solutions e-money in tier 2 and tier 3 cities are still not fully utilized. These cities, with their growing populations and growing economies, present unique opportunities for platforms e-money to promote financial inclusion, spur economic growth, and empower local communities.

"Virgo can also be used to make payments at various outlets that accept payments using the QRIS method. Currently, Virgo has received permission from Bank Indonesia and is registered as a member of the Indonesian Payment System Association (ASPI)," said Viko.

Virgo goals in 2023

Until the end of 2023, Virgo's target is to reach around 1,5 million active users. Virgo also wants to be a solution for other financial service industry players to be able to target circles unbanked/underbanked. Going forward, Virgo also wants to collaborate with related parties, to continue to innovate in providing a wider range of financial services such as banking, investment, insurance, capital lending and others.

"That way, Virgo can continue to help users to fully manage their finances digitally and take part in building financial inclusion in Indonesia," said Viko.

One of the main advantages of adopting non-cash payments is the potential to provide financial services to people who do not have access to banking or have limited access.

By leveraging mobile technology, digital wallets and innovative payment solutions, cashless payments can bridge the gap between traditional banking systems and individuals who have limited access to financial services. This inclusion can empower individuals and small businesses, enabling them to participate more actively in the formal economy.