Indonesian state-owned digital wallet LinkAja shifts focus to lending

Indonesian digital wallet LinkAja, which is backed by several of the country’s state-owned enterprises (SOEs), is shifting its focus to lending, amid competition from unicorns such as OVO and GoPay in the retail payments segment.

The firm sees opportunities in “supply chain financing” — or lending to merchants — in the SOE ecosystem, said LinkAja’s chief marketing officer Wibawa Prasetyawan in an exclusive chat with DealStreetAsia. “If we restrict ourselves to being a payments provider, the margins are thin, therefore we will enter into lending, which is quite secure and has visibility from the supply side of agents, retailers, and end-users,” Prasetyawan added.

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