by Diana Ngo
KinerjaPay has become the first prominent e-commerce portal in Indonesia to let customers purchase goods using bitcoin. Launched today, the new payment method results from a partnership with Bitcoin Indonesia, the country’s leading bitcoin exchange platform.
The collaboration with Bitcoin Indonesia is part of KinerjaPay’s plans to tap into the digital currency area as the company intends to “establish relationships with Bitcoin’s Indonesia’s membership, currently in excess of 150,000 accounts.”
Edwin Ng, Chairman and CEO for KinerjaPay Corp., said he expects to see an increase in the volume of transactions on his platform.
Founded in May 2013, Bitcoin Indonesia is the leading bitcoin exchange platform in its home country and the largest exchange in trading volume in Southeast Asia.
The startup made headlines in September 2014 when it partnered with iPaymu to allow residents of Indonesia to buy and receive bitcoins over the counter at over 10,000 ‘Indomaret’ convenience stores, putting the digital currency within easier reach of the country’s large unbanked population, estimated at over 200 million, Bitcoin Indonesia’s founder Oscar Darmawan said back then.
In addition to the new payment method, KinerjaPay has announced plans to “introduce its own mining concept, allowing users to ‘mine’ the virtual currency, which may eventually be converted into a cryptocurrency.”
According to Ng, the branded mining protocol and new virtual currency will provide his company with a “real competitive advantage in the e-commerce sector.”
The increasing acceptance of cryptocurrencies and new payment mechanisms by large organizations as well as local players has influenced the faith of these new disruptive technologies.
According to a report by Research and Markets, the global cryptocurrency market, which is largely led by bitcoin, has witnessed “undulating growth” in the period but substantial growth in terms of trade volume. The firm predicts that the market will growth further in both value and volume, and will eventually see widespread use of cryptocurrencies amongst the general population.
KinerjaPay, an Indonesian digital payment and e-commerce platform, is one of the most complete online marketplaces in Indonesia. Customers can find a wide range of products from clothing and home furnishings to books and electronic items. KinerjaPay also offers special discounts and provides services for mortgage and bill payments.
The company has experienced rapid growth. It is now serving over 50,000 customers in Indonesia, up from 12,000 at the start of April. KinerjaPay claims an increase in its average number of daily transactions, from 300 per day to 1,500 per day, over the same period.
According to Ng, Indonesia’s e-commerce sector represents a substantial opportunity, as it is still in its infancy.
Data from World Economic Outlook suggest that the country’s e-commerce market was estimated at Rp 18 trillion (US$1.3 billion) in 2015, with 37 million consumers. As for 2016, the Internet Service Providers Association predicts that the market will reach Rp 25 trillion (US$1.8 billion) with 49 million consumers.