E-money launch: Bank Central Asia (BCA) directors Suwignyo Budiman (right) and Armand W
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Publicly listed Bank Central Asia (BCA) expects its newly launched Sakuku e-money transaction to attract at least one million users within the first year of operations.
The new app, which was officially launched on Monday, is categorized as an electronic money (e-money) transaction service that enables users to conduct small payments for purchases in physical and online shops, using only their cell phone numbers.
BCA retail and commercial banking director Suwignyo Budiman said the bank was currently in the process of expanding the app's features, which would enable users to top-up their cell phone credit, pay monthly bills and withdraw money from BCA ATMs.
'We hope this app can attract young people, who constitute half of our total 13 million customers, and more merchants to join us. As transactions grow, we will be very pleased if we can get 1 million people using the app in the first year,' Suwignyo said after the launch event.
The private lender, Suwignyo said, was confident that the new app could be as successful as Flazz, its card-based e-money product, which was launched in 2007 and currently covers at least 7 million cards with an average transaction volume between 300,000 and 400,000 a day.
According to Suwignyo, BCA struggled to raise awareness of Flazz cards during the first years of its existence, but later succeeded in promoting it by expanding usage to payments for public transportation and toll road fees.
A a card-based e-money service, Flazz was more practical to be used for public utilities, Suwignyo said, while Sakuku would be more suitable for online payments.
'Lately, more Flazz users are using their cards to pay parking fees, toll fees and public transportation fees, such as for TransJakarta [buses] and the commuter railway. On the other hand, Sakuku will be focused more on retail purchases and other such payments,' Suwignyo said.
In competition with similar products from other banks, BCA director of operation and information technology Armand W. Hartono added that the lender was convinced that the new app would attract users as it offered greater security through QR technology, which acts as a coding system for smartphones.
The app also uses a six-digit personal identification number (PIN) with a maximum balance up to Rp 5 million (US$339.4 million) and maximum monthly transaction value Rp 20 million.
'We will also actively raise awareness among customers and merchants about this product through various means, such as social media,' Armand said.
As part of efforts to raise customer awareness, BCA funding and services division head Ina Suwandi said the bank would accelerate partnerships with merchants, especially those that enjoyed popularity among young people, such as e-commerce websites, cafes and restaurants and cinema chains.
'We expect to build partnerships with hundreds of merchants this year. Currently, we already partner with 13 physical merchants with 114 outlets in Greater Jakarta, as well as two online shops,' Ina said.
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