OVO (payment service)

OVO, officially PT Visionet Internasional, is a digital payment service based in Jakarta, Indonesia. It is a digital platform for simple payment and smart financial services, with affiliated merchants, business partners and members in its ecosystem. OVO is the leading digital payment service in Indonesia based on transaction value.[1]

PT Visionet Internasional
OVO
Industry
Founded25 September 2017
FoundersLippo Group
Headquarters
Jakarta, Indonesia
Number of locations
Indonesia
Key people
Karaniya Dharmasaputra
OwnerLippo Group
Softbank Group
Grab
Tokopedia
Websitewww.ovo.id

It is a unicorn, which was valued about $2.9 billion as of October 2019.[2] OVO is the fifth unicorn in Indonesia after ride-hailing company Gojek, travel service firm Traveloka and two e-commerce companies Bukalapak and Tokopedia. OVO is part of Lippo Group,[3] which has partnerships with Grab and e-commerce platform Tokopedia.[4]

History

OVO's journey began back in 2016 as an app that offered payments, loyalty points and financial services backed by Lippo Group's digital arm. OVO received permission to operate as a fintech company throughout Indonesia on 25 September 2017.[5]

In December 2017, it was announced that Tokyo Century Corporation had invested US$116 million for a 20% stake in the startup.[6] In March 2019, several media reports announced that Indonesian e-commerce giant Tokopedia has invested in OVO.[7] This comes after Tokopedia and OVO announced a partnership in October 2018 that saw OVO's e-wallet service replacing TokoCash on Tokopedia's platform.[7] OVO expanded into offline stores in early 2019.[8] As of March 2019, over 110 million people used OVO, spread across 300 Indonesian cities.[8] OVO has also reportedly acquired a local peer-to-peer lending company Taralite in early 2019.[8]

During Indonesia Digital Conference 2019, Mochtar Riady announced Lippo Group has sold two-thirds of OVO stock owned by Lippo Group to Softbank Group, this decision result in Lippo Group only own around 30% of OVO stock.[9]

In November 2020, Zalora introduce OVO as payment option. To use the payment system, people should ensure that they have registered the same phone number on both apps. They can select OVO on the checkout page of Zalora’s website and app. [10]

In December 2020, Alibaba-backed e-commerce platform Lazada onboarded OVO for its Indonesian customers.[11]

See also

References
  1. "Ovo confirms unicorn status". Tech in Asia. Retrieved 14 November 2019.
  2. "OVO becomes Indonesia's fifth unicorn startup, Rudiantara says". The Jakarta Post. Retrieved 14 November 2019.
  3. "IT Minister Says OVO Is Indonesia's Fifth Unicorn". Jakarta Globe. Retrieved 14 November 2019.
  4. "Exclusive: Grab in talks to merge Indonesian payment firms to overtake Gojek - sources". Reuters. Retrieved 14 November 2019.
  5. "OVO's Thompson: "We're moving forward from payments into financial services"". The Asian Banker. Retrieved 14 November 2019.
  6. "The 2020 Indonesian E-wallet Race". M2 Insights. Retrieved 25 April 2020.
  7. Maulani, Anisa (15 March 2019). "Tokopedia reportedly invests in e-wallet platform OVO". E27.
  8. Singh, Pooja (28 March 2019). "How Ovo Has Grown to be Indonesia's Largest Digital Payments Platform". Entrepreneur.
  9. Setyawati, Desy (28 November 2019). "Tak Kuat 'Bakar Uang', Bos Lippo Akui Jual Dua Pertiga Saham OVO". Entrepreneur.
  10. https://www.thejakartapost.com/life/2020/11/20/zalora-introduces-ovo-as-payment-option.html
  11. "Ovo and Lazada Indonesia announce partnership, as Alibaba moves closer to Grab". KrASIA. 2020-12-11. Retrieved 2020-12-14.
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