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Jakarta Post

CIMB Niaga teams up with MasterCard on virtual credit card

  • The Jakarta Post

    The Jakarta Post

Jakarta   /   Tue, September 22, 2015   /  05:43 pm
CIMB Niaga teams up with MasterCard on virtual credit card Banking at your fingertips: Bank CIMB Niaga president director Tigor M Siahaan (left) and MasterCard Indonesia country manager Irni Palar introduce the OctoPay mascot during the launch of the online banking transaction system “OctoPay” in Jakarta on Monday. Using the service, Facebook users who are also OctoPay’s customers can access various transaction features through their Facebook accounts.(JP/Jerry Adiguna) (left) and MasterCard Indonesia country manager Irni Palar introduce the OctoPay mascot during the launch of the online banking transaction system “OctoPay” in Jakarta on Monday. Using the service, Facebook users who are also OctoPay’s customers can access various transaction features through their Facebook accounts.(JP/Jerry Adiguna)

Banking at your fingertips: Bank CIMB Niaga president director Tigor M Siahaan (left) and MasterCard Indonesia country manager Irni Palar introduce the OctoPay mascot during the launch of the online banking transaction system '€œOctoPay'€ in Jakarta on Monday. Using the service, Facebook users who are also OctoPay'€™s customers can access various transaction features through their Facebook accounts.(JP/Jerry Adiguna)

Publicly listed lender CIMB Niaga is collaborating with MasterCard on a new online payment gateway known as OctoPay virtual credit card to enable the bank'€™s customers to pay their online transactions without having to own physical credit cards.

CIMB Niaga'€™s president director Tigor M Siahaan said that the new payment gateway was launched to cater to the growing trend of online shopping in Indonesia. He said the trend would continue to grow and would become the future of shopping.

'€œWe have followed how this market [online shopping] has grown and how it will continue to grow,'€ Tigor said during the launch of the platform on Wednesday.

Tigor said CIMB Niaga expected the new platform to attract 50,000 users both from existing and new customers. He said the bank currently had about 4 million customers, 40 percent of which had shifted to e-banking channels.

'€œWith the launch of this service, we hope to attract new customers. We hope existing customers will also use it,'€ he said

He also said the bank aimed to increase its total transactions to 18.5 million from the current amount of around 16 million. It hopes to see around one million transactions from the 50,000 targeted users, according to Tigor.

'€œWe expect that our customers will shift from traditional branch transactions to digital transactions,'€ he said.

Tigor did not disclose the bank'€™s total investment for the new platform.

Meanwhile, CIMB Niaga'€™s branch and branchless banking head Budiman Poedjirahardjo said that the new platform was launched to fulfill the demand for online payment options still lacking in Indonesia today.

He cited figures that suggest that out of 73 million internet users in Indonesia today, only 9 million hold credit cards.

According to him, there are more Indonesian online shoppers who pay through bank transfers and cash-on-delivery than those who pay through credit cards.

He said paying through bank transfer is time-consuming and not safe both for the shoppers and the merchants.

'€œIn bank-transfer payment you need to go out to find an ATM machine before you can make a payment. Plus, often transactions are cancelled at the last minute,'€ Budiman explained.

Meanwhile, MarterCard Indonesia head manager Irni Palar, who also attended the launch, said that CIMB'€™s decision to launch the payment gateway was on track amid the increasing popularity of online shopping in Indonesia.

Irni cited her company'€™s finding that online shopping was the second most common reason Indonesians went online; the first being checking emails and browsing for information the third.

'€œOnline shopping has become one of the reasons people access the internet,'€ she said.

She said, however, that the boom of online shopping had not been followed by reliable online payment options. According to her, 40 percent of people who make purchases online pay via a cash-on-delivery method, while 30 percent pay through bank and ATM-transfers . The rest pay via credit cards and virtual pockets, she said. (saf)

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