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Bank Mandiri says e-money users double
Bank Mandiri says its electronic money (e-money) user base has increased two-fold each year as 80 percent of all transactions were performed through electronic channels
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ank Mandiri says its electronic money (e-money) user base has increased two-fold each year as 80 percent of all transactions were performed through electronic channels.
The bank's e-money service involves a card containing a balance that users can top up to a maximum of Rp 1 million (US$87).
Bank Mandiri vice president for electronic banking Rahmat B. Triaji says the bank's e-money service currently has a user base of 3.2 million people.
'The program, which we started in 2008, has over 100 percent year-on-year growth,' he said on Friday.
He added that up to 90 percent of all transactions were linked to payments of toll road fares, with the remaining connected to purchases at retail stores, such as mini markets.
'We handle at least 9 million transactions on a monthly basis,' Rahmat said, adding that the number equated to at least Rp 150 billion per month.
'Given that a majority of e-money users utilize the service to pay for their toll fares, as much as 90 percent of the usage is in Greater Jakarta,' he pointed out.
He further added that the majority of people who utilized e-money were not even Bank Mandiri account holders.
Non-Bank Mandiri account holders could obtain the card as well by topping up the balance on their card through either the bank's automated-teller machines (ATM) or joint ATMs, which accepts cards from various banks.
Card holders can also top-up by cash at Bank Mandiri offices.
'Only 30 percent of e-money users have Bank Mandiri accounts,' Rahmat said, adding the bank had more than 10 million account holders.
Therefore, he said that the e-money service would help maintain the loyalty of current account holders and was also a strategy for acquiring new customers ' non-account holders who used e-money.
'We also benefit from e-money because the funds within the cards are kept under us,' he noted.
Bank Mandiri is the largest bank in the country by assets, with Rp 672.17 trillion as of the first half this year.
Rahmat also said the e-money market was still large, given that cash still dominated people's purchases.
'Only around 15 percent of payments at toll booths are done electronically. The fact that the market penetration rate is still low means that we have much room to grow,' he added.
He noted that cashless transactions were gaining momentum among account holders who needed practical means of performing transactions.
'As much as 80 percent of all transactions are performed through electronic channels as compared to via tellers at our offices,' Rahmat noted.
He added that given the large potential in the form of electronic as well as branchless banking, Bank Mandiri would launch its new electronic cash, or e-cash, service in mid-October.
'With e-cash, people could utilize their mobile phone-based accounts, which they could top up,' he said.
He added that people could then utilize their mobile-based accounts to pay for their purchases at stores, including mini markets.
'We are in discussion with several stores, a majority of whom are our existing partners,' Rahmat said.
The bank has recorded a 16 percent year-on-year increase in net profit to Rp 8.3 trillion in the first half of the year.
Meanwhile, operational profits surged 17.8 percent to Rp 22.98 trillion compared to the same period last year.
Part of the operational profit increase was driven by the 13.8 percent annual rise in fee-based income to Rp 6.5 trillion during the first half of the year year-on-year.
