OVO team up to offer the payment service on the e-commerce platform
Indonesian e-commerce giant Tokopedia and Lippo Group-backed cashless payment service OVO today announced a new partnership that will make OVO available as a payment option on Tokopedia’s online marketplace platforms.
In mid-October, Tech News reported about the possibility of Tokopedia shutting down its e-wallet feature TokoCash, to be replaced by OVO, as the former continue to struggle in securing e-payment license from the financial services authority in Indonesia (OJK).
Tech News has reached out to the companies to confirm whether the partnership aimed to replace the use of TokoCash, or simply an addition to Tokopedia’s existing payment options.
Based on our observation, by the time this article was published, the TokoCash feature remains available on the Tokopedia mobile app and website.
In a press statement, OVO explained that its partnership with Tokopedia is part of its three-prong strategy to introduce mobile payment to the wider Indonesian customers: By partnering with offline retails (shopping malls, warungs, grocery stores), online-to-offline (O2O) services such as ride-hailing giant Grab (where it has replaced GrabPay as Grab’s payment feature in the Indonesian market), and e-commerce platforms such as Tokopedia.
As a result of the partnerships, OVO claimed to become the largest mobile payments platform in Indonesia by transaction volume and reach.
The company expected to add in Tokopedia’s 80 million monthly active users and four million merchants to its existing user base of 60 million.
“We expect the surge in new users and additional transactions from e-commerce to drive market leadership for OVO across the board,” said OVO CEO Jason Thompson.