Indonesia’s on-demand transportation, payments and logistics unicorn Go-Jek announced that it is making ‘a substantial acquisition of shares’ of Philippines-based blockchain-powered fintech company Coins.ph as reported by Manila Standard.
The partnership will enable Go-Pay, Go-Jek’ s mobile payments platform, to collaborate with Coins.ph to encourage cashless financial transactions in the Philippines.
“Coins.ph and Go-Jek share the same vision that has made each a success in their markets, empowering their customers by giving them lower-cost and more convenient access to services,” said Ron Hose, founder and CEO of coins.ph, in an official statement.
Running on blockchain, Coins.ph enables anyone to access financial services through Coin.ph’s mobile wallet, including services such as remittances, air-time, bill payments, and online shopping at over 100,000 merchants who accept the digital currency.
Hose believes that by combining Go-Pay’s technological expertise, scalability and experience with Coins.ph’s local knowledge, they are able to give the Filipinos more convenience, choice, and access to the digital financial services.
The Philippines is an emerging market in fintech. According to a Philippines Fintech Report from 2018, only 31% Filipino adults have bank accounts, from a large population of over 100 million. And although the mobile penetration is reaching 58%, only 4% of all transactions are made online in the Philippines currently, giving a huge opportunity for fintech to grow, especially now that the country is looking increase the share to 20% digital transactions by 2020.
Go-Jek sees many similarities between Indonesian and Filippino consumer transaction behaviours. “With the second largest population and a strong domestic economy, the Philippines is one of the most exciting markets in Southeast Asia,” said Go-Jek Founder and CEO Nadiem Makarim. “Supporting the success of a local fintech entrepreneurial champion like Coins.ph, with a similar ambition to empower society through innovation and technology, has always been part of our passion for growth.”
In Indonesia, Go-Pay sees its mission in giving the unbanked and underbanked easy access to new financial products and services. The platform works together with 240.000 merchants across Indonesia and 28 financial institutions.
This partnership is a positive development for Go-Jek in the Philippines after the country’s transportation regulator rejected Go-Jek’s application to launch a ride-hailing service earlier this month. Although its on-demand transportation product hit a roadblock, for now, Makarim is optimistic that the alliance between Go-Jek and Coins.ph signals Go-Jek’s long-term commitment to the Philippines.
Editor: Nadine Freischlad