LinkAja May Shake Go-Pay and OVO Dominance of Digital Wallets

Writer: Desy Setyowati

Editor: Muchamad Nafi

9/7/2019, 08.31 WIB

LinkAja has great potential to dominate the regional market due to the support of various SOEs. It is also open to collaboration with Go-Pay and OVO.

Peluncuran Layanan Keuangan LinkAja
Visitors make transactions using LinkAja's electronic-based financial services during the product launch event at the Bung Karno Sports Complex, Senayan, Jakarta, Sunday (6/30/2019).

Competition between digital wallet service providers is getting tougher. The presence of new competitor LinkAja has stifled the e-wallet market, which has been dominated by Go-Jek’s Go-Pay and Lippo Group’s OVO.

After being released on Sunday last week, PT Fintek Karya Nusantara (Finarya) immediately made a breakthrough for LinkAja. The financial technology (fintech) firm made by a number of State-Owned Enterprises (SOEs) is now more focused on targeting broad segments, ranging from users of public transportation to people who do not have smartphones.

The previous digital wallet players, such as Go-Pay, OVO and DANA, have not worked on the two segments. “This market is very potential,” Indonesian E-Commerce Association (idEA) Chairman Ignatius Untung told on Thursday (7/4/2019).

This is why LinkAja in the transportation services is collaborating with various mass transportation operators, such as Mass Rapid Transit (MRT) and Light Rapid Transit (LRT) in Palembang. Users of public transportation in big cities have become a profitable market. People are certainly looking for payment services that provide a lot of convenience.

In penetrating the mobile phone-based market, LinkAja provides services using Unstructured Supplementary Service Data (USSD) *800# for users of feature phones (old cell phones). This service is only available for Telkomsel’s customers, but LinkAja plans to expand it to customers of other telecommunications companies.

This segment has been targeted as there are still many old cell phone users in the regions. In addition to using USSD facilities, LinkAja also utilizes a program from the Financial Services Authority (OJK) called Laku Pandai. This non-office financial service in the context of inclusive finance is driven by the Association of State-Owned Banks (Himbara) to target regional users.

LinkAja has great potential to dominate any market that is located far from bank's branch offices due to the support of Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Tabungan Negara (BTN). Referring to the OJK target, this company can build a simple financial product to boost the acceleration of financial inclusion in the country.

As a combination of payment applications made by SOEs, such as TCash (Telkomsel), TBank and MyQR (BRI), e-cash (Bank Mandiri), and yap! and UnikQu (BNI), LinkAja has a broader way to move its business. A number of other state companies are also involved in helping, including Pertamina, Asuransi Jiwasraya, and Danareksa. In addition, Jasa Marga, Garuda Indonesia, and Kereta Api Indonesia (KAI) are said to be shareholders in this payment fintech firm.

There are 1.5 million financial contact points through conventional services in Indonesia



Bank branch


ATM belongs to Bank




Laku Pandai


Digital Financial Services (DFS/LKD)


Fintech payments, including LinkAja, Go-Pay, OVO, and DANA, are expected to be able to serve users across the archipelago. However, it cannot be denied that some people in Indonesians are still using old cell phones with no Internet access features. Based on data from Statista, smartphone users are projected to only reach 28 percent of Indonesia’s total population this year.

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