Alibaba, Tencent, Facebook, PayPal and others Looking to Invest Heavily in Southeast Asia Online Payments. KinerjaPay Corp (OTCQB: KPAY) to Benefit
In the last several months, the world's e-commerce giants such as Alibaba (NYSE: BABA), Amazon (NASDAQ: AMZN), Facebook (NASDAQ: FB), PayPal (NASDAQ: PYPL) and Tencent Holdings Limited (OTC: TCEHY) have announced intentions to invest hundreds of millions of dollars to expand online payment and E-Commerce platforms in India, and Indonesia.
Although India has received a lot of attention from financial media to-date, things are starting to change. A study sponsored by Google and Temasek predicts that e-commerce in Southeast Asia will grow from $5.5 billion in 2015 to $88 billion in 2025 with Indonesia alone reaching $46 billion or 52% of that amount.
A recent article in Techcrunch described how Alibaba's Ant Financial took its first official step in Indonesia by partnering with the conglomerate Emtek to use the Blackberry Messenger platform. The company is getting serious on E-Commerce in Indonesia by buying a majority stake in Lazada and announcing plans for a cross border logistics hub in Malaysia.
A Bloomberg news article published yesterday stated that Billionaire Taizo Son, the younger brother of the Softbank Group founder is looking to invest $100 million in Southeast Asia. Indonesia will be the gateway to Thailand, Vietnam and the rest of the area.
The key to being successful in establishing an online e-payment platform in India and Southeast Asia is the ability to accommodate the lack of credit cards, debit cards and bank accounts for the majority of customers. This requires a technology platform that can connect customers with physical product and service providers while at the same time allowing cash only customers easy access points to top off their smart phones' E-wallet.
The Indonesian economy generates nearly $1 trillion in GNP but only 42% of the population uses bank accounts and only 5% have credit cards. Indonesia is the third largest smart phone market in Asia/Pacific - where roughly 25% of the 250 million population have a smart phone. The mobile phone user base is expected to reach 90-100 million by 2019.
A technology solution to facilitate online payments is the key to the previously mentioned e-commerce growth. Therefore, any company that has already established the infrastructure will make a great acquisition or investment target for the world's e-commerce giants such as Amazon, PayPal, Facebook, Alibaba and others who want in on this land grab.
KinerjaPay (OTCQB: KPAY), headquartered in NYC with a large office in Jakarta, Indonesia is such a company. It offers payment solutions to its users and merchants in Indonesia as well as its own e-commerce platform KinerjaMall.com.
KPAY is only one of five companies that have a license from the Central Bank that allows their customers to deposit cash into a KinerjaPay – linked bank account that is registered to their smart phone. KPAY offers a variety of payment channels to its users which allows them to pay bills such as utility, health insurance, credit cards, phone bills, and auto leases much faster and more conveniently.
Recently KPAY announced a dramatic increase in their infrastructure through a series of partnerships with some of the largest product and service providers in Indonesia. These include the following:
Online payment solution to Perusahaon Listrik Negana, the State Run Electric Utility's 60 million customers.
POS Indonesia - State owned Postal Service operating in 100% of the Inner Cities and 42% of the remote locations through 4800 Post Offices.
Pegedian - Indonesia's largest provider of loans and credit with 6 million customers.
Columbia-Cash and Credit, Mega Auto Finance & WOM Finance - The leaders in Indonesia's Motorcycle Sector with 80 million motorcycles leased.
Deals with the two largest convenience store chains with nearly 25,000 combined stores servicing close to seven million people daily.
KPAY trades on the OTCQB at around $2 per share for a market capitalization below $20 million. With the infrastructure that has recently been established, this uniquely positioned company appears to be a major pathway through which the e-commerce giants could quickly grow their presence in Indonesia. The Company should be a natural investment fit for multinational companies racing to enter Indonesia's e-commerce and online payment market. If true, KPAY's market capitalization will grow rapidly and investors long KPAY could be in for a pleasant surprise.
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