Users are Increased, Credit through OVO Skyrocketed 50%

Financial technology company (fintech) payment OVO noted, the number of new users increased nearly fourfold or 267% during the corona pandemic. Payments for e-commerce and loan disbursements soared.

In detail, payments for e-commerce grew 110%, loans 50%, and food delivery 15%. As is known, OVO cooperates with Grab regarding payment services. While the loan or installment service (paylater) is provided by fintech financing (lending) Taralite.

“We see that consumers turn to online shopping habits and adopt a method of payment without cash to buy important needs,” OVO CEO Jason Thompson said in a special interview with Kr-Asia reporter Khamila Mulia, quoted from Kr-Asia, Friday (5 / 6).

He considered people in many countries are heading towards business digitalization and digital adoption. “We believe these changes tend to be permanent,” he said. In addition, according to him, a partnership is the key before entering a new normal phase (new normal) or a new custom order.

This year, the company also focuses on introducing more insurance and investment offers for consumers. This is to strengthen the OVO proposition to provide a comprehensive range of financial services.

Earlier this year, OVO worked with Bareksa and Prudential Indonesia. “We will say more to share with these products, ahead of the launch,” Jason said.

Fintech P2P Owned by OVO Has OJK License

Taralite (PT Indonusa Bara Sejahtera), Fintech P2P lending part of the OVO Group, has obtained an official license from the Republic of Indonesia Financial Services Authority (OJK) based on SK Decree of the OJK Board of Commissioners No. KEP-19 / D.05 / 2020 dated May 19, 2020.

Through the service innovations presented by Taralite and OVO (PT Visionet International), as a payment platform and digital financial service in Indonesia, consumers and also MSMEs will gain broad access to untapped services, including consumer and business loans, especially from the MSME sector

“With the support of OVO, it is possible for us to reach markets that have not been served, including those who are unbanked and underbanked,” Taralite President Director Sharly Rungkat said in a press release yesterday (5/6).

Karaniya Dharmasaputra, President Director of OVO, added, “With OVO’s open ecosystem strategy and technology reliability, Taralite will continue to expand OVO services not only in the digital payment area but also to provide easy and unlimited access in the loan area to millions of MSMEs in the MSMEs in throughout Indonesia.”

Based on data from the Central Statistics Agency, the contribution of MSMEs to Indonesia’s GDP has reached 60% and absorbs 97.22% of the national workforce. However, less than 15% of MSMEs have access to financing products.

Taralite Services to Help MSMEs

Early in 2020, Taralite has introduced DanaTara services as cash flow management and additional business capital solutions. These services were focusing to help MSMEs in Infonesia. In Teralite, MSMEs can get access to online financing of up to Rp500 million, with the status of submissions processed within 1-3 working days and a tenor of up to 12 months.

The company claims, their PayLater service directly serves 96% people who do not have access to consumer credit for retail transactions. Based on DailySocial research, PayLater OVO was the most widely used last year.

IDR 500 million were channeled for Indonesian MSMEs through DanaTara. The application status is processed within one to three working days, while the loan tenure is up to 12 months.

At present, the Taralite service is available for SMEs who are members of e-commerce platforms such as Shopee, Tokopedia, Bukalapak, and Lazada. Loans disbursed by Taralite have grown 50% since the beginning of this year, with 500 thousand MSMEs activists joined in the OVO ecosystem.