WhatsApp Might Launch Mobile Payments in Indonesia

Yolanda Curtis
August 22, 2019

The Facebook's messaging service is in talks with many Indonesian digital payment companies for providing them with the mobile transaction services in a bid to knock on the fast-growing e-commerce sector of the nation, people aware of the matter informed.

Facebook-owned messaging service, WhatsApp, is purportedly in preliminary talks with multiple digital payments firms as well as a state-owned bank to launch digital payment services in Indonesia.

But unlike in India where it plans to offer direct peer-to-peer payment services, WhatsApp will simply serve as a platform in Indonesia supporting payments via local digital wallets due to tough licensing regulations, the sources told Reuters. The report also believes that Facebook's agreements in Indonesia could become a way to avoid local regulations on bans imposed on foreign digital wallets.

"WhatsApp is in conversations with financial partners in Indonesia about payments, however the discussions are in early stages and we do not have anything further to share at this stage". The introduction of these services is not expected to take place before 2020.

WhatsApp might launch mobile payments in Indonesia.

Facebook the highly controversial social media giant developing the Libra global stablecoin, is in talks with Indonesian digital payment platforms and fintech firms to enable it to launch a WhatsApp-based mobile payments service in the region, reports Reuters on August 20, 2019.

As Facebook intends to integrate its crypto wallet service, Calibra, into WhatsApp and all of its platforms, one key use case for Calibra would be remittances, targeting emerging markets. "Calibra won't be available in USA -sanctioned countries or countries that ban cryptocurrencies".

Miu is a journalism major and has been writing as a business journalist for various dailies before joining OBN.

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