12 July 2021 – Jakarta – Indonesian fintech platform PAYFAZZ secures an e-money license from Bank Indonesia. The e-money license was officially approved on June 28, 2021 by Bank Indonesia as Electronic Money Issuer under PT Cashfazz Teknologi Nusantara, a subsidiary company of Fazz Financial Group. Fazz Financial Group is the holding company formed after PAYFAZZ’s investment into Xfers announced earlier this year.
The E-Money License is a lucrative license owned by top fintech players and big banks that will enable the company to offer better products and services for its customers. Though the license has been given to other major financial technology companies, PAYFAZZ is the largest financial services platform for rural Indonesia to receive this license. The company is thus uniquely positioned to continue creating better financial inclusion for unbanked rural populations. Since launching in 2017, Payfazz has impacted more than 700,000 MSMEs/agents who ultimately serve over 80 million end-users through its platform. The license is valid for 5 (five) years and can be renewed for the next five years.
“This is a significant milestone we have been looking forward to for quite some time. Now with an e-money license, we’re expecting that this advancement would move us closer to our goal of becoming a full stack financial services platform for unbanked people.” said Hendra Kwik, CEO and co-founder of PAYFAZZ.
The company plans to use this license to open up more use cases that can be facilitated by PAYFAZZ agents, especially to help Xfers global merchant clients collect payments from the unbanked. As of May, Fazz Financial Group has been processing nearly US$10 Bn/annualized volume through its ecosystem of products and with the e-money license expects this volume to grow further.
“We expect this to be impactful to our already profitable business as a financial services platform and boost our transaction volume up to three times its current level. This e-money license has the potential to strengthen the synergies between PAYFAZZ and other financial products under Fazz Financial Group,” adds Hendra.
E-money license is the latest license in PAYFAZZ’s ecosystem
This e-money license is the latest addition to the company’s full suite of licenses it has secured. Prior to this, Fazz Financial Group has secured a remittance license through Bank Indonesia, enabled global and local merchants payment gateway through its investment in Xfers (MAS Major Payment Institution license), entered into a mutual agreement to provide digital banking services with Bank BRI Agro (subsidiary of Indonesia biggest rural bank), and opened up buy-now-pay-later services through its investment in Modal Rakyat (OJK P2P lending license).
“Licenses are critical for fintech companies to create a strong moat and build defensibility, especially in Southeast Asia’s markets where regulations are continually evolving and fintechs are rebundling banking services as they grow. Having invested in PAYFAZZ since 2018, we’re proud to have been partnered with PAYFAZZ since they began the hard work of securing a full stack of financial service licenses across Indonesia and Singapore. This e-money license in particular has ripple effects for the PAYFAZZ ecosystem, and we’re excited to see the team fully leverage this advantage for rural Indonesia,” says Yinglan Tan, founding managing partner of Insignia Ventures Partners, an early investor in PAYFAZZ. ***