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Prominent start-ups working in embedded finance in SEA Region

Embedded finance is the process through which financial services are integrated into non-financial applications or platforms. A seamless user experience may be created inside a single platform with embedded finance, and new goods and services can be offered that benefit consumers while increasing income. It may also be a valuable monetization tool for businesses, as it can aid in the development of a closer connection between businesses and consumers, as well as the retention of existing clients.

The COVID-19 epidemic has significantly hastened Southeast Asia’s transition to a cashless society, with an extraordinary increase in the number of e-payment transactions occurring simultaneously with a significant fall in cash withdrawals and deposits. Throughout the lockdown, banking, digital payments, and loan-financing services played a significant role in propelling the economic wheel onward. Many embedded finance companies are start-ups, due to which their ability to pivot their operations to deliver specialised services as and when consumers need them helped improve the sector as a whole.

Using Embedded finance enabled many startups in Southeast Asia to succeed in their sectors. Some of the prominent startups include Grab, Gojek, Tokopedia, Sea, OVO, Bukalapak,  Lazada, Traveloka, Trax, and AI Akulaku. In this post, we’ll list down some of the best start-ups of Southeast Asia using embedded finance in providing services. 

1. Grab Pay

GrabPay is a payment system that was introduced by Grab, a ridesharing service. More than 100 million people have downloaded and utilised this programme. It enables users to make use of a variety of virtual payment methods from a single GrabPay wallet. Bank cards, PayPal, and other payment ways are among the options that users may attach to their personal wallet. GrabPay is a convenient cashless payment solution that enables you to pay for a wide range of services without having to carry cash. You will be rewarded with GrabRewards points for your participation. The sole significant disadvantage of GrabPay is that it may only be used by consumers who are residents of Singapore. 

2. GoPay

GoPay is Indonesia’s most popular electronic money wallet. GoPay was created in 2016 as an e-wallet for Gojek, with the primary differentiation being its unique integration inside the Gojek super app. With an emphasis on enabling the unbanked and underbanked, GoPay has swiftly grown to become one of Indonesia’s top payment systems, seen as safe, secure, inclusive, and comprehensive by millions. Consumers fill their GoPay wallets via cash payments to Gojek drivers, ATM withdrawals, SMS text messages, or internet banking, and then pay by confirming the order and providing their PIN. Additionally, a pay later option is available, which consolidates all transactions into a single charge that must be paid by the end of the month.

3. Tokopedia e-wallets

Tokopedia is an Indonesian e-commerce technology business. William Tanuwijaya and Leontinus Alpha Edison created it in 2009. Between July and September 2019, Tokopedia had 65,953,400 average monthly visits on a desktop in Indonesia, according to iPrice Group. On May 17, 2021, Tokopedia and Gojek announced their merger and the creation of GoTo Holdings. Tokopedia has officially implemented GoPay as a payment method. GoJek’s online payment and transaction services may be utilised for any transactions on the Tokopedia application. Tokopedia users will discover the GoPay option on the application’s home page.

4. SeaMoney

SeaMoney is a subsidiary of Sea Group, which is a prominent worldwide consumer internet corporation with a presence in over 100 countries. SeaMoney’s aim is to use technology to improve the lives of people and companies in their area by providing them with access to financial services. Aspects of SeaMoney’s offers include mobile wallet services, payment processing, credit options, and other digital financial services and products that are relevant to the digital financial industry. These services are provided in seven markets spanning Southeast Asia and Taiwan under a variety of brand names, including ShopeePay, SPayLater, and other brands, among others. Using seamless digital payments, SeaMoney empowers customers and merchants while also offering credit to consumers and businesses via the use of digitalization and automation.

5. OVO (Payment services)

OVO is a digital payment provider established in Jakarta, Indonesia. In 2019, OVO was named Indonesia’s first fintech unicorn and the country’s top digital payment provider. OVO joins Gojek, Traveloka, Bukalapak, and Tokopedia among Indonesia’s unicorns. Grab and local investors control OVO. Lippo Group created OVO, which got an e-money licence from Bank Indonesia on September 25, 2017. Tokyo Century Corporation bought US$116 million for a 20% interest in the firm in December 2017. Both Grab and Tokopedia, the Indonesian e-commerce powerhouse, invested in OVO in 2018. In 2021, Grab acquired Tokopedia and Lippo Group’s shares together with other local investors, bringing its interest in OVO to 79.5%.

6. Bukalapak

Bukalapak, founded in 2010, is one of Indonesia’s biggest online marketplaces and unicorn firms, owned and run by PT Bukalapak.com. The company was founded by a group of entrepreneurs in 2010. Individual entrepreneurs may use the retail platform to conduct customer-to-customer (C2C) transactions with other customers. Bukalapak created an Android application in 2014 that allows purchasers to access items or services and complete transactions using their cellphones. With the support of DBS Indonesia, Bukalapak has established a solid digital collaboration in order to expand its services as an online marketplace. DBS assists Bukalapak in the payment of Indonesian taxes as well as the payment of credit card bills.

7. Lazada Wallet

Lazada has successfully penetrated Southeast Asia’s lucrative eCommerce sector and has grown to become the largest platform. One of the reasons is the breadth of payment options available. On the site, both domestic and foreign vendors have no difficulty receiving payment. The ability of customers to pay through cash on delivery has entirely opened Southeast Asian eCommerce marketplaces. Additionally, Lazada accepts all major payment cards, including VISA and Mastercard. In 2018, Lazada debuted its own e-wallet, which has some resemblance to China’s WeChat wallet. The E-Wallet is now accessible in four countries: the Philippines, Singapore, Malaysia, and Thailand. The UI is fairly clean and enables buyers to fill up their wallets with up to USD 1,000.

8. UANGKU Traveloka

With Bank Indonesia’s approval, UANGKU is an electronic money product produced and powered by PT Smartfren Telecom Tbk and approved by the central bank. UANGKU is a mobile wallet developed by PT Smartfren Telecom Tbk to provide individuals with a secure and easy way to conduct financial transactions with just a few taps on their smartphone. Founded with the objective of democratising secure and easy mobile payments, UANGKU has pledged to continue developing for everyone equally in order to have their payments simplified and to live a more hassle-free lifestyle.

9. TraxPay

Logistics management is a complicated process, made much more complicated by the tens of thousands of payments to carriers that any particular shipper must make each year. TraxPays simplifies logistics management simply, which also applies to payments made using the company’s service. TraxPays is an invoice payment solution that provides effective and timely carrier payments, decreases effort for the internal accounts payable team, strengthens connections with carriers, and offloads payment reconciliation to Trax. It is purpose-built to assist you with your financial management aims. Thus, TraxPays is the best carrier payment solution since it streamlines the process, frees up resources, eliminates mistakes, and improves visibility.

10. Woztell from Akulaku

Akulaku is a financial technology business that provides a multi-functional financial platform with the goal of empowering neglected populations. The platform offers a variety of virtual services, including microloans to aid with bill payment and a retail marketplace where users may buy products on installment plans, therefore building credit. According to BuiltWith, Akulaku is actively using 27 technologies on their website. These include the Viewport Metadata, the iPhone / Mobile Compatible, and the Apple Mobile Web Clips Icon.

Conclusion

Financial technology businesses and banks may profit from cooperation in a variety of ways, including gaining access to larger markets and a speedier path to product-market fit, where fintech companies can get early adopters from banking customers. This post concludes that the usage of a more collaborative business model, such as B2B2C, has played a significant role in disrupting existing business models and creating new synergies and chances for collaboration. The growth of such services will enable businesses to streamline their processes and increase their conversion rates due to minimal friction. Companies should adopt these features in their business processes and improve their offerings to customers. 

Emerging Trends: Understand the Basics of Embedded Finance
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