Singapore Telecommunications, known as Singtel, is partnering with Indonesian operator Telkomsel to launch a real-time mobile remittance service in Indonesia, to boost its mobile money initiatives and tap into the relatively unbanked market in that country.
The service is the first collaboration for Singtel and Telkomsel “on mobile money initiatives to drive innovation in both markets,” according to a press release on Sunday.
The new service allows customers in Singapore to send money to about 4,500 cash withdrawal points across Indonesia via the Singtel Dash app, a mobile payments solution. The locations are post office branches managed by PT Pos Indonesia, a state-owned company responsible for providing the country’s postal services.
Both telcos have also announced future plans to offer a mobile remittance service to Telkomsel’s TCash, an app which offers a digital mobile money service in Indonesia.The remittance service will involve SingCash, a subsidiary formed by Singtel in 2011 to provide mobile remittance and payment services.
“Indonesia is one of our main remittance corridors,” said Yuen Kuan Moon, chief executive of Consumer Singapore at Singtel. There are 200,000 Indonesians living and working in Singapore, with outward remittances from Singapore to Indonesia worth over $409 million annually.
Currently, remittance money services in Singapore remain limited and many workers resort to taking days off to go to remittance outlets in order to send money home.
Singtel is making a push into digital technologies as competition in Singapore’s telcos industry continues to intensify. It announced earlier in March that it is working with e-commerce player Lazada Singapore to create an online marketing portal for small and midsize enterprises.