Jakarta. Payment gateway provider Faspay has been in Indonesia long before the technology was recognized by the financial authorities and yet today it manages Rp 6 trillion ($389 million) worth of monthly transactions involving over 5,000 merchants.

And the room for growth is very large in a country where the unbanked population made up more than half of the adult population with a substantial number of people without digital payment literacy.

“The first time we came to Bank Indonesia and the OJK [Financial Service Authority] were welcomed with some confusion because at that time there were no related regulations on the payment gateway,” Faspay CEO Eddy Tju said during a visit to B-Universe Media Holdings in Jakarta on Thursday.

When the national legal framework was finally available, Faspay became the first tech company to be granted with a central bank license as the provider of Payment Initiation and/or Acquiring Services (PIAS) in November 2017.

Faspay’s remittance service division is also registered with Bank Indonesia, allowing it to expand the business beyond the national border.

The tech company plans to expand markets in Singapore and China, both are traditionally Indonesia’s largest trading partners.

Eddy said B2B transactions between Indonesia and the two countries remain a complicated matter because they must involve inter-bank communications and currency purchases. It normally takes two days before the dealing is done.

Faspay seeks to simplify trade procedures with Singapore and China by collaborating with fintech platforms in the two countries.

“Our aim is to become a strong local player with a regional reach,” he said.

But the idea behind the birth of Faspay is not about big businesses or giant merchants. Faspay is meant to help ease transaction methods among all groups of the population, including the unbanked.

“For example, parents used to come to the school’s administrative office and stand in line just to pay tuition fees. Many schools today implement the payment gateway system such as Faspay for remote transactions,” said Kina Grace Kawatu, Faspay’s head of marketing division.

“Our clients extend beyond big merchants to institutions that previously had no idea about using the digital payment system.”

New customers keep arriving, including state-run railway company KAI and bus operators like Damri, Rosalia, and Budiman who seek to expand their online ticketing system.

Travelers can now buy bus or train tickets at convenience store chains like Indomaret or Alfamart. 

“Not a Startup”
Established two decades ago, Faspay is owned by Media Indonusa, a subsidiary of tech giant Astel Group which provides a wide range of technology and telecommunication solutions.

Unlike many other recently-born tech companies, Faspay is not a startup.

“Faspay is a conventional company with a single shareholder. We can stand on our own two feet without needing a new source of capital,” Eddy said.

It goes without saying that many tech startups are burning through cash at their initial phase of the operation to lure more customers.

“Payment gateway business is like a marathon race -- it’s all about endurance. We maintain competitive tariffs but we never give something for free,” Eddy said.