Razer Fintech, the financial technology arm of Razer, announced Wednesday the acquisition of PT E2Pay Global Utama (E2Pay), a business-to-business-to-consumer (B2B2C) digital payment facilitators and e-money players in Indonesia.
Razer Fintech is already an O2O (offline to online) digital payment network in Southeast Asia, and this acquisition marks its further expansion into Indonesia, the company said in a statement.
Founded in 2012, E2Pay provides a breadth of payment solutions to merchants and financial institutions, including payment gateway, e-money, and remittance services licenses in Indonesia. These services complement Razer Merchant Services, Razer Fintech’s business-to-business arm regionally, as it facilitates cross-border payments for its 60,000 merchants to the region’s largest populated country.
“E2Pay is one of Indonesia’s very few digital payment players that has a comprehensive set of licenses across various payment gateway services, e-money, and remittance. The acquisition of E2Pay allows us to accelerate our entry into Indonesia, one of the fastest-growing digital economies in Southeast Asia, as well as be able to better serve the digital payment needs of our regional and global merchants as the single partner of choice,” said Razer FinTech Chief Executive Officer Lee Li Meng.
E2Pay’s payment gateway supports high-growth e-Commerce verticals, including online marketplaces, professional services, travel & tourism, as well as other segments throughout Indonesia, with some of E2Pay’s most notable merchants consisting of Tokopedia, Bukalapak, Traveloka and Blibli.com.
The Indonesian FinTech player also connects major payment channels and supports local and alternative payment methods, including card schemes, internet banking, mobile banking, e-money, virtual accounts, offline points, and personal financing to provide a comprehensive local payment platform for more than 500 merchants in the region.
The E2Pay e-money platform, MBayar, serves over 500,000 registered users and supports payments for credit or data plans, bill payments, QR payments, cash withdrawals and fund transfer services.
“We hope that the synergy between E2Pay and Razer Fintech will enable both organizations to tap on our merchant base to grow, expand and scale our platform’s reach across Southeast Asia,” E2Pay Chairman, Rudy Danandjaja said.
Internet usage in Indonesia has been steadily growing, with a Gross Merchandise Volume (GMV) of USD $40 Billion in 2020, mainly driven by e-Commerce, even offsetting declines in Travel, Transport and Food Delivery industries throughout lockdown periods according to the e-Conomy SEA Report by Google, Temasek and Bain & Company.
Through this acquisition, Razer Fintech and E2Pay look to contribute Indonesia’s expected Gross Merchandise Volume (GMV) of US $124 billion by 2025, at a 23 percent Compound Annual Growth Rate (CAGR), making it one of the largest growing digital economies in Southeast Asia.