The partnership is an extension of a strategic deal signed between the two companies in March this year.
According to the agreement, Lippo Group will develop a universal payments platform that enables Indonesians to top-up an e-money account and use it to pay digitally at Lippo companies.
Grab will then integrate the payments platform into the Grab app as a mobile wallet option within GrabPay, enabling any mobile user to use the Grab app to pay for not only their daily transport needs, but also other lifestyle services.
“We commend the government’s efforts to push Indonesia towards a cashless society and look forward to contributing towards this goal. Grab’s partnership with the Lippo Group to develop a universal payments platform will be a leap forward for e-money in Indonesia,” said Grab Group CEO and co-founder Anthony Tan.
“With a rapidly growing middle class, people will want to have a mobile wallet option in the Grab app, which they can use every day, whether for transport, or payments for basic transactions,” he added.
Tan believed that the potential of developing a mobile payments platform in Southeast Asia is “limitless”. The majority in Southeast Asia are unbanked but are armed with mobile phones. Thus, the only way forward is to find a cashless solution that will help customers manage their money and mobile wallets.
“We will work with local partners to make cashless transactions a reality for the majority in Southeast Asia,” he concluded.
The universal platform will be rolled out in the fourth quarter this year.
With that, over 50 million existing customers from the Lippo and Grab will be able to pay via their mobile phones or use their Grab App to pay for a full suite of services from Lippo’s retail companies, including department stores, hypermarts, cinemas, coffee shops and e-commerce.
Lippo Group director Adrian Suherman said his company will introduce more partner merchants in unrelenting efforts to push cashless transactions.
“Lippo Group is committed to transforming lives in Indonesia, and we want to work with partners like Grab that have this common vision,” Suherman said in a statement.
“Indonesians can enjoy the convenience of using their mobile phones and the Grab app to top-up and pay, as well as better manage their cash flow,” he added.
Grab is determined to expand new services specifically for Indonesian preferences, as the country is Grab’s largest market. Nearly 95 per cent of Indonesians do not use credit cards. Grab said it will continue to partner with leading companies to launch innovative services to cope with these challenges.
Began as a taxi-hailing app in 2012, Grab has expanded its core product platform to include private cars and motorbikes. The region’s largest transport network is now testing new services such as social carpooling, as well as last mile and food deliveries.
Grab currently offers services in Singapore, Indonesia, Philippines, Malaysia, Thailand and Vietnam.
Meanwhile its partner Lippo Group is a pan-Asian investment holding company with investments in real estate, department stores, retailing, financial services, telecommunications, hospitality, healthcare, news media, and IT services.
With Riady family’s second generation at the helm, Lippo Group has been increasing its presence in the digital scope through aggressive investments in technology, media and online platforms.
Its latest and largest investment is through Mataharimall.com, an online marketplace, which has pledged $500 million of funds for the platform.