At the end of December 2020, Indonesian e-wallet OVO, through its holding company Bumi Cakrawala Perkasa, announced that it has launched a tripartite cooperation with online insurance company ZhongAn Insurance and SoftBank's ZA Tech to jointly establish an insurance business technology platform. Through this cooperation, OVO The insurance business has been further expanded.
OVO is an independent payment application established by the Indonesian giant Lippo Group. It was initially used by Lippo on shopping malls across the country, e-commerce platform mataharimall, local coffee chain Maxx Coffee, movie theater chains, department stores and other platforms.
OVO payment scenario development
After the establishment of OVO, it has attracted the attention and deep cooperation of the second-ranked unicorn in Indonesia, Grab, and defined its own GrabPay as "GrabPay supported by OVO". As a result, OVO has entered the most popular taxi-hailing scene in Indonesia and has gradually become an important part of Grab's internal ecology. With the growth of Grab, OVO has also begun to emerge in the payment field of the Indonesian catering industry.
Online shopping scene
The OVO online shopping scene mainly comes from Tokopedia, the leading online shopping platform in Indonesia. Tokopedia has access to OVO for the same reasons as Grab, and decided to abandon its own e-wallet for in-depth cooperation with OVO and use it as the main payment method of the platform. Tokopedia is also an Indonesian unicorn company. According to the latest e-commerce traffic ranking, Tokopedia is the second largest e-commerce platform in Indonesia after Shopee. The cooperation with Tokopedia makes OVO occupy an important position in the entire Indonesian e-commerce payment scene. .
OVO's credit business was mainly developed through the acquisition of Taralite, a local P2P lending company. At the same time, OVO is also cooperating with Indonesia's online wealth management platform Bareksa. Its users can use the Bareksa platform for investment and wealth management, with an annual return rate of as high as 5%-6%. The addition of credit and online wealth management services has further enriched OVO's functions.
The expansion of OVO payment scenarios in 2020 did not stop due to the epidemic. Some time ago, it was revealed that OVO has reached a cooperation with Indonesia's largest insurance company PT Prudential Life Insurance Company, and in December this year, it cooperated with ZhongAn Online Property Insurance Co., Ltd. , OVO's scene layout in the insurance industry has become quite large.
Through a steady stream of partnerships, OVO has transformed from a single payment scenario to multiple scenarios, and has become one of the most commonly used e-wallets for Indonesian users.
OVO's market share
The main market share of e-wallets in Indonesia is occupied by OVO, GoJek (Gopay), Dana, LinkAja, etc. According to the latest downloads of the application market (IOS & Google application market) and user daily activities, the current downloads of GoJek (Gopay) in Indonesia And Nikkatsu both occupy the first place in the market, followed by OVO and Dana in third.
However, according to the latest market transaction amount, OVO occupies 37% of the market share, and Gopay under GoJek occupies 17%. OVO has a far lead in the market payment amount. The main reason is that the payment order volume and amount of OVO online shopping scene are relatively large , In terms of transfer, the timely arrival of funds also has a greater advantage over GoPay.
It can be seen that no matter from the statistics of daily downloads or market transaction amount, OVO is a presence that cannot be ignored in the field of Indonesian e-wallets.
2021 is coming, and the epidemic is still affecting the lives of Indonesian residents. In order to prevent the spread of the epidemic and reduce contact, the concept of a cashless society has been accelerated under the advocacy of the Indonesian government. Electronic wallets, including OVO, are in the lives of Indonesians. Location will also become more and more important.