PayPal enters Indonesia's online payment business

Targeting Indonesia's SMEs and huge businesses.

PayPal will be abletoservice these sectors through its partnership with Doku, an Indonesian online payment gateway company.

Faraz Ahmad, PayPal general manager for Southeast Asia, said in Jakarta on Wednesday that PayPal had witnessed “good organic growth” from their business of providing SMEs with payment services.

Yet, he pointed out that “the story was very different” when it came to netting enterprises, given that these enterprises had “very complex” system requirements in relation to payment gateway services.

“Typically, they require a lot of customization,” he said. Therefore, he added, PayPal has decided to join forces with Doku, given that Doku’s client list included enterprises.

Nabilah Alsagoff, chief operating officer of Doku, said that the company handled around 300 enterprises, including airline operators, online ticket boxes, import and export companies and companies in the tourism sector.

Doku’s clients include state-owned airline operator, Garuda Indonesia, online ticket box Raja Karcis, and children’s play land Kidzania. Doku, in a unified method, connects these clients with six banks, including Bank Mandiri and Bank Central Asia (BCA).

She further said that, although Doku had discussed partnership with PayPal for over two years, they decided to seal the deal this year given that merchants had now grown more aware of the importance of allowing online payments and e-commerce.

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