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DOKU; The First Payment Gateway Service in Indonesia

- Monday, May 04, 2020
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Long before financial technology was popular in this digital era, "DOKU" which is a trademark of PT Nusa Satu Inti Artha was already present that provides digital payment services in Indonesia.

The services provided by DOKU are as a bridge between sellers and consumers or buyers in online transactions which include money transfer services, peer to peer, internet banking, phone banking, SMS banking, and credit cards.

At the beginning of its establishment in 2007, DOKU only cooperated with around 50 merchants. Ten years later DOKU has succeeded in cooperating with more than 25 thousand merchants including large companies such as AirAsia, Oppo, Sinar Mas, and others.

How Does DOKU Start Its Business in Indonesia?

When DOKU started its business in 2007, the Indonesian people didn't have adequate knowledge about financial technology, but DOKU remains continued to encourage business people to enter the e-commerce system. They began to provide education and systematic approaches to prospective merchants to be able to use the online payment system.

When compared to other countries that have already applied payment transactions through credit cards, in Indonesia, credit cards are not the main solution. At that time, DOKU began to think about ways that online transactions could be accepted and used at the level of small and medium enterprises (SME). Of course, this step is not easy to do because the merchants of these circles are accustomed to using manual payment systems through cash payments or bank transfers that require proof of confirmation in a payment transaction.

DOKU e-Wallet

DOKU then launch a payment technology called "e-Wallet" which provides a "digital wallet" or "electronic wallet" service to help users save money and make payments online and offline bills safely and easily anytime and anywhere. Users can also take advantage of the monthly bill payment feature such as motorcycle credit instalments, and make balance transfers to other DOKU e-Wallet users.
DOKU Apps on Google Play
They applied for permission to Bank Indonesia (BI) to be able to approach the market segment that was interested in doing online shopping but did not want to be bothered with payment validation procedures. For example in a case, there are consumers often make purchases of goods online but do not have any credit card. So DOKU took advantage of this opportunity to bridge the gap between consumers and sellers without direct contact during the payment transfer process.

At the beginning of its presence, DOKU also had difficulty convincing the bank as a business partner. At the same time, the Information and Electronic Transaction (ITE) Law by the Indonesia government was born, although it has not yet reached e-commerce banking. That's where they got support from the Minister of Communication and Information. On that initial opportunity, they got a bank partner and one merchant who stated they were ready to join, namely insurance. They can be trusted because they are the will mitigate and ensure business processes run smoothly to minimize fraud risk. Because they have their anti-fraud team, DOKU can carry out the process of mitigation and monitoring of risk very well.

For the support of a good and tested system, although in the first year they were only able to work with 50 merchants, now it has reached more than 50 thousand where around 1000 companies are large merchants engaged in the business of airlines, billers, insurance, transportation, and others. The latest is the presence of a payment gateway in the payment of Soekarno-Hatta airport train tickets in the Railink application.

Later DOKU not only served the payment system or cash withdrawal but also investment. They want to expand features and functions in the e-Wallet application. Because they operate as a non-bank institution with the largest portfolio in the MSME sector, consumers who save their money are not very interested in the investment feature. So they work with mutual fund companies if there are consumers who are interested in investing. If they want to take the form of savings, they will work with banks.

Through aggressive steps in acquiring new users and advertising in various media including public transportation modes, in 2018 they succeeded in acquiring DOKU e-Wallet users to 2.2 million. This figure is not included in the calculation of the co-branding program with several partners so that the targeted number of DOKU e-Wallet users reach 3 million.
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