Post on 06-May-2019
Telkomsel’s E-Money Innovation for Boosting
Indonesia’s Digital Economy and Financial Inclusion
Danu Wicaksana Yogyakarta, 16 November 2017
2
1 Developing countries include Kenya, Mexico, India, Brazil and South Africa
2 Developed countries include China, Poland, Singapore and South Korea
Fraction of Indonesia’s population that is unbanked compared to 39%1 in similar countries
Number of ATMs per 1,000 people compared to 0.4891 in similar countries
Fraction of cash transactions by no of transactions compared to 53%2 in similar countries
Number of banks branches per 1,000 people compared to 0.105 in similar countries in the region
0.165
83%
60%
0.085
36% People over 15 years old with formal bank account compared to ~70% in similar countries
Indonesia
remains one of
the largest
growing economy
in the world.
10th largest
economy in
terms of PPP
>250M
population
Fintech-based services has a huge potential in Indonesia, whereby ~60% of its
population is still unbanked and ~83% of transactions is still done by cash
3
26
13
3
Farmer
22
Civil Servant
Pensioner
5
Students
Informal Workers 13
Handyman
33
Micro traders 55
Productive poor
Telco company has important role in driving financial inclusion and cashless society, given
low banking penetration at ~40% and ultra-high mobile phone penetration at ~130%
60% of 170mn adult Indonesian population
is still unbanked Cost of banking is high
60% unbanked
population
40% banked
population
G2P recipients
Supply side Demand side
Branch cost setup is high
Perceived as non profitable
market
Inadequate IT infrastructure
Operational complexity
Long distance to do banking
Unaffordable administration
cost
Small balance of saving
4
Telkomsel has great network and distribution channels that can be used to provide a more
effective and efficient Financial Inclusion to every Indonesian
4G
3G
2G
Cover ~99% of Indonesian population
Widest distribution channel across Indonesia
Channel Partners #
Dealer 61 ~400K registered outlet
& ~800K reseller
Bank 56 ~100,000 ATMs
Retail 75 ~30,000 stores
Devices 32 950 stores
Direct - 1,000 Grapari and
MOGIs
Online 17
T-Cash
Merchant ~40,000 outlets
Best network coverage & quality
34% 40% 41%
53%
45%50%
12%
15%
9%
147K
94K
59K
Telkomsel Competitor Competitor
Largest #BTS Best Broadband Experience (Mbps)
4G
3
G
16.18.6 3.3
6.32.8
1.5
Telkomsel Competitor Competitor
Telkomsel Competitor Competitor
Source: JPMorgan Aug 2017 Report, National Result
4G
3G
2G
Source: Infomemo H1 2017
5
In Telkomsel, we have T-CASH as our mobile financial services product that aims to
help driving financial inclusion and cashless society in Indonesia
Micro
P2P
transfer
G2P
disbursement Micro
saving
Micro
Loan
Micro
Insur-
ance
Tap to Pay
Cashless
transaction
Lifestyle
Retail/micro
payment Trans-
portation
Cashin
“T-CASH vision is
to be the #1 mobile
payment for every
Indonesian”
• Serving ~20m
Indonesians by 2020
and ~50m by 2025,
both urban and rural
population
• Driving financial
inclusion and cashless
society in alignment
with Indonesian
government agenda
6
T-CASH has two major customer segments: Lifestyle and Micro Segments
2. Micro
Mostly Unbanked/
Underbanked Segments, with
following characteristics:
▪ Live in rural areas with no
access of financial service, or
live in urban areas but hesitant
to go to financial institutions
▪ Tend to keep money in their
house, high risk of theft
▪ Many are targeted recipients
of government aids (e.g. non-
cash Rastra program, UMI and
other programs)
1. Lifestyle
Mostly Banked Segments, with
following characteristics:
▪ Prefer fast and convenient
payment method for daily low
value cash transactions
▪ Demand highly safe payment
method
▪ Require great customer
experience and “look & feel”
7
T-CASH is one of the leading players in the Indonesian e-money space, with more
than ~60,000 cash-in points, 5 mio users and ~40,000 merchant footprints
*800#
1. Cek Saldo
2. Token
3. Kirim Uang
4. Is i Pulsa
5. Pembelian
5. Pembayaran
6. Info
USSD
*800#
Mobile App
Dengan menekan tombol proses , saya telah
menyetujui syaratdan ketentuan
Web Check-out
(online/web payment)
T R A N S F E R
M O N E Y
P A Y
O N - M O B I L E
P U R C H A S E
O N L I N E
T A P T O - P A Y
linked
account
Multi
purposes
use cases
- Corporates
- Government
- Remittance
Agents
Grapari
Indomaret
Merchant
T-CASH Cash-in Channels: ATM, modern retails,
agents, Grapari, etc
ATM Bersama
ACCESS CASH IN USAGES
NFC Sticker
T-CASH Access Points: Mobile App, NFC Sticker, USSD,
and Web-Check Out
T-CASH Use Cases: Offline Tap Payment,
Mobile Payment, P2P transfer, Online Purchase
8
T-CASH is using two modern payment technologies in its offline merchants:
TAP (using NFC sticker) and SNAP (using QR code)
1. TAP (NFC sticker)
• Require EDCs or NFC-
enabled phones to
accept payment
2. SNAP (QR Code)
• Only require printed QR
code (lower Capex and
Opex) vs. EDCs
9
Most consumers are happy with the
service, which can trigger viral
marketing in their communities
Source: customer survey, N=184
likely to
recommend to
their friends
92%
71%
62%
have good
experience on
last purchase
will definitely
keep using
TCASH TAP
~1.1 million views
~450k fans
~45k followers
T-CASH has a solid presence in Social
media, which is very important to engage
its customers
5+ mio T-CASH
registered users >60 mio # of Annual
Transactions
(run-rate) 34
Number of Indonesian
provinces with active
T-CASH users
~30k followers
As of today, T-CASH has created good tractions in the Indonesian market, with >5 mio
registered users in all Indonesian provinces with >90% customer satisfaction level
10
In driving financial inclusion, we have initiated partnership with BTPN, BTN and BNI
to provide financial inclusion services for millions of customers across Indonesia.
~200K Agents
across Indonesia covering
all provinces
Channel Integration Goyang Kampung Desa Nabung Nabung Sekolah Ekstra Blusukan G2P Rastra
~2 Mn Customers
acquired to date
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T-CASH has also worked with the Indonesian government to support its non-cash
food social assistance program in 2015-2016
3 4 5 2 1
... and 2nd Trial for Rastra (Beras Sejahtera) distribution on Aug-Sep 2016
Beneficiaries register at the
nearest agent
Funds cash-out and exchange of
food aid at the agent
Registration of
beneficiaries is
based on KTP and
PKH/mail invitation
Activation of T-CASH
dan TCASH TAP
Pick-up Rastra
Social aid cash
withdrawal
Distribution of non-
cash (e-money) funds
Sending invitations
to beneficiaries
City Beneficiaries
Jakarta 621
Solo 257
Bogor 246
Medan 387
1,521
Beneficiary data
IDR 100k as food
assistance
Rp 100k as social
assistance
Successful pre-pilot 1 with 2x disbursement for 2,022 beneficiaries based in 8 locations in Dec’15 -Jan’16
14 Jan 2016 22 Dec 2015 15 Dec 2015 30 Nov 2015
28 Nov 2016 4 Dec2016 14 Dec2016
12 Dec2016 20 Dec2016
1 Location 5 Locations
2 Locations
Preparation
IT System, Methodology,
Communication,
Agent Acquisition, Training
8 Locations
31 Jan 2016
Cities Villages Beneficiaries
Bendungan Hilir 216
Karet Tengsin 368
Cileduk Tengah 412
Leuweung Gajah 375
Lemah Abang Kulon 233
Sendangmulyo 290
Tembalang 78
Kedungmundu 50
Jakarta
Cirebon
Semarang
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Moving forward, T-CASH will further strengthen partnership with banks and become the
platform that channels various financial products (e.g., micro loan, micro insurance)
MICRO SAVING MICRO G2P MICRO LOAN
Rp
MICRO INVESTMENT MICRO INSURANCE
TCASH financial access for unbanked
CASHIN /SAVINGS
REGISTRATION /KYC
CASHOUT/WITHDRAW
REMITTANCE
INSURANCE
LOAN
INVESTMENT
LINKED ACCOUNT