GoPay-Jago Integration Makes GoTo Above the Competitor: Analyst

TheIndonesia.id - A digital economy expert said the integration of Gojek-owned GoPay and Bank Jago will help the public to access financial services, hence improving financial inclusion in the country.

According to a researcher from the Institute for Development of Economics and Finance (INDEF) Nailul Huda, the integration will simplify the process for users since the two entities are now part of the same ecosystem.

“With this integration, it will be easier for the public to access financial services, and this will subsequently result in an increased financial inclusion,” Huda said in a statement on Wednesday, December 1.

One of the perks offered by this move is the public can now open a Bank Jago account through Gojek application for less than five minutes; customers also don’t have to pay for administration fee or to make a deposit to meet the required minimum balance. Bank Jago’s customers can also enjoy GoPay top-up without any additional fees.

Huda said such benefits will appeal to the younger generations as they are currently the main users in the digital market.

“On average, customers in the digital market are millennial Generation Z, who will relatively look for such features. When benefit like free top-up is available, they will be interested to use the service,” Huda explained.

The benefits will complement GoPay’s status as part of the GoTo ecosystem, which is already huge and a market leader. GoTo ecosystem is the most complete with a number of entities from different business sectors. Besides GoPay, its members include Midtrans, Selly, GoBiz, Moka, and GoStore.

“To this day, there’s no digital ecosystem as big as GoTo Financial…. It will be difficult for competitors to catch up.”

Upon the merger between Gojek and Tokopedia, which birthed GoTo Financial, the e-commerce platform is reported to have been enjoying an increase in sales due to the availability of GoPay as an instant payment method for users.

It’s also seen as an ideal move as e-commerce has become the preferred place for customers to purchase goods during the COVID-19 pandemic, with mobile restrictions being imposed in most regions.