Indonesian travel sector startup Passpod has signed a memorandum of understanding (MoU) with Weepay Payment Processing Corp, a payment service provider from the Philippines, to establish a joint venture in the Philippines.
The joint venture is a follow-up to Passpod’s plan to expand overseas and offer its services in new destinations after receiving fresh funds from its IPO in 2018. Passpod says it aims to earn around IDR 53 billion (USD 3.7 million) in revenue from its entry into the Philippines.
Established in 2017 as a Mifi rental service provider, Passpod now provides unlimited wireless internet connectivity via rented MiFi devices, and offers tickets for package tours and local attractions around the world.
The MoU was signed by Passpod CEO Hiro Whardana and Weepay managing consultant Johann T. Dizon. The ceremony was witnessed by the ambassador of the Philippines to Indonesia, Lee Hiong Tan Wee.
According to Whardana, the joint venture company will use the Passpod brand in the Philippines and begin operations by the end of May. It will offer services to the country’s increasing flow of outbound travelers, which has reached a number of 4.5 million.
A report by Mastercard on outbound travel in the Asia-Pacific region between 2016 and 2021 forecasts the Philippines to have the fastest growth in its number of outbound travellers until at least 2021. Currently, 3.4 million overseas trips are made by Philippine nationals annually, and that number is expected to increase to 4.3 million in two years.
The high spending budget of Filipinos also lured Passpod to the country. “The use of the internet for data needs is also high in the Philippines, even higher than Indonesia. In addition, the awareness to travel abroad among Filipinos is also quite high,” Whardana concluded.
Editor: Brady Ng
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