OVO ventures into e-commerce with Tokopedia partnership

Indonesian digital payment platform OVO has tied up with e-commerce marketplace Tokopedia, extending the use of OVO to the realm of e-commerce. As part of the partnership, Tokopedia users will be able to choose OVO as a payment method for their purchase, making it the widest digital payment platform in Indonesia, the press statement read.

The partnership will add 80 million Tokopedia monthly active users to the 60 million OVO user base, as well as more than 4 million Tokopedia merchant partners to OVO. The merchants include malls, warungs, and partners of GrabFood and Kudo agents. This move is part of OVO's three-pillar strategy to introduce digital payments to all Indonesians, beginning first with retail stores, followed by online-to-offline services through Grab, and now through e-commerce.

OVO's director of enterprise payments, Harianto Gunawan, said the partnership validates the company's strategy to present a payment platform for companies in Indonesia, both online and offline.

"The use of cash is a habit that is very difficult to change and consumers will only switch to non-cash payments if it is easier and safer than using cash. Working with partners is the most efficient way to deliver more places where consumers can go cashless," Harianto said.

Meanwhile, OVO's CEO, Jason Thompson, said the company has an "optimistic outlook" at the end of 2018. It hopes to immediately see an increase in new users and a significant number of transactions to encourage OVO leadership in various markets.

Tokopedia's COO, Melissa Siska Juminto, said, "Together with OVO, we not only provide a more convenient shopping experience for our users, but also provide payment options that can be used widely, both online and offline and contribute to increasing financial inclusion. This partnership takes us one step closer to our mission to achieve digital economic equity."

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