DigiAsia Corp. and Jalin, Indonesia’s Largest ATM Network Servicer, Announce Strategic Collaboration

Rhea-AI Summary

DigiAsia Corp. (NASDAQ: FAAS) and PT Jalin Pembayaran Nusantara have announced a strategic collaboration to advance financial inclusion in Indonesia. The partnership leverages Jalin's network of over 52,000 ATMs with DigiAsia's Embedded Fintech as a Service Platform to deliver innovative financial solutions. Key components of the collaboration include:

• Cardless Cash Withdrawal (CCW)
• Cash Deposit Machine (CDM) expansion
• White label ATM solutions
• Merchant Kiosk deployment

This partnership aims to strengthen financial accessibility and empower consumers and merchants across Indonesia, including DigiAsia's network of 1 million merchants. The collaboration is expected to drive commerce and enterprise business growth through widespread digitized finance.

Positive

• Strategic partnership with Jalin, Indonesia's largest ATM network servicer
• Access to over 52,000 ATMs for expanded financial services
• Deployment of merchant kiosks to DigiAsia's 1 million merchants
• Potential for increased market penetration and financial inclusion in Indonesia

Negative

• None.

Insights

Financial Technology Analyst

This strategic collaboration between DigiAsia and Jalin marks a significant step towards financial inclusion in Indonesia. The partnership leverages DigiAsia's FaaS platform and Jalin's extensive ATM network to create a powerful synergy in the fintech space.

Key innovations like Cardless Cash Withdrawal and Cash Deposit Machines address critical pain points in financial accessibility. The white label ATM solution opens new branding opportunities for financial institutions, potentially increasing competition and service quality in the banking sector.

The deployment of merchant kiosks to DigiAsia's 1 million merchants is particularly noteworthy. This move could significantly expand the financial services ecosystem, potentially leading to increased transaction volumes and revenue streams for both companies.

While the collaboration shows promise, investors should monitor the execution and adoption rates of these initiatives to gauge their impact on DigiAsia's financial performance in the coming quarters.

Market Research Analyst

This partnership taps into a vast untapped market in Indonesia, where a significant portion of the population remains underbanked. By combining DigiAsia's fintech solutions with Jalin's 52,000+ ATM network, the collaboration has the potential to rapidly scale financial services across the country.

The focus on cardless transactions and merchant kiosks aligns well with global trends towards digital payments and financial inclusion. This could position DigiAsia as a key player in Indonesia's fintech revolution, potentially leading to increased market share and revenue growth.

However, challenges may arise in terms of user adoption, especially in rural areas where traditional banking habits may be deeply ingrained. The success of this initiative will largely depend on effective education and marketing strategies to drive uptake among the target population.

Investors should closely monitor user acquisition metrics and transaction volumes in the coming months to assess the real-world impact of this collaboration on DigiAsia's business performance.

Collaboration Advances Financial Inclusion in Indonesia

NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- DigiAsia Corp. (NASDAQ: FAAS) (“DigiAsia” or the “Company”), a leading Fintech as a Service (“FaaS”) ecosystem provider, and PT Jalin Pembayaran Nusantara (“Jalin”), a subsidiary of the state-owned enterprise holding company Danareksa and a leading digital payment transaction processing company in Indonesia, today announced a strategic collaboration that will advance the penetration of financial inclusion to the underserved across Indonesia. As partners, Jalin’s extensive network of over 52,000 ATMs will be leveraged in coordination with DigiAsia’s Embedded Fintech as a Service Platform delivering innovative financial solutions.

The following core components of the DigiAsia and Jalin partnership prioritize banking the underbanked and underserved and fostering financial inclusion:

• Cardless Cash Withdrawal (CCW): DigiAsia’s embedded finance application enables users cardless cash withdrawal from Jalin’s vast ATM network, providing greater accessibility and convenience.
• Cash Deposit Machine (CDM): Expanding the availability of CDMs to facilitate easier cash deposits, supporting individuals and businesses in managing their finances efficiently.
• White label ATM: DigiAsia’s white label FaaS capabilities offer brand customizable ATM solutions through Jalin’s ATM network to enhance brand presence and service delivery for financial institutions and other partners.
• Merchant Kiosk: DigiAsia’s 1 million merchants will be deployed Jalin’s merchant kiosks to provide a range of financial services, including payments, transfers, and other transactions, in a user-friendly and accessible format.

Prashant Gokarn, CEO of DigiAsia, commented, "This partnership with Jalin amplifies our mutual goal of strengthening financial inclusion in Indonesia with ubiquity of financial accessibility in the region. Together, our innovative embedded fintech solutions and Jalin’s ATM asset network platform, will foster financial empowerment for the consumers and merchants of Indonesia, including our network of 1 million merchants. This strategic partnership will drive Indonesia’s commerce and enterprise business growth through widespread digitized finance.”

Ario Tejo Bayu Aji, CEO of Jalin, said, “Combining the distinct core competencies of DigiAsia and Jalin’s businesses bolster the expediency of unlocking financial accessibility to broad communities in Indonesia. We are synergistically paving the way to achieve our aligned social and economic missions. This is evident through the comprehensive robust financial infrastructure of our ATMs and CDMs and DigiAsia’s embedded processes to address the value chain of commerce and enterprises’ ability to achieve growth with its solutions that continue to expedite digitized finance.”

About DigiAsia

DigiAsia is a leading Fintech as a Service (FaaS) provider operating a B2B2X model offering its complete Fintech solution in emerging markets. DigiAsia's fintech architecture offers small and medium business enterprises (SMEs) comprehensive embedded finance APIs to streamline processes across the commerce value chain of distributors and customers. DigiAsia's embedded fintech solutions equally address democratizing digital finance access that supports financial inclusion of underbanked merchants and consumers in emerging markets resulting in growth for enterprise business. The suite of B2B2X solutions provided by DigiAsia include, but are not limited to, cashless payments, digital wallets, digital banking, remittances and banking licenses. DigiAsia has recently established a strategic initiative to develop its embedded FaaS enterprise solution with AI capabilities in Southeast Asia, India, and the Middle East, with plans for global expansion. For more information, please visit DigiAsia’s Corporate website here or Investor Relations website here.

About Jalin

PT Jalin Pembayaran Nusantara (Jalin) is a financial service technology-based company established in 2016 as a result of the joint initiative between the Ministry of State-owned Enterprises, Himbara (Bank Mandiri, BNI, BRI, and BTN), and PT Telkom Indonesia (Persero) Tbk. In 2019, PT Danareksa (Persero), which has transformed into Holding Danareksa, became the majority shareholder of Jalin.

As a company providing integrated service in the sector of modern payment system technology, Jalin manages the LINK switching network services and holds the biggest market share in the debit switching category. Acting as a Payment System Infrastructure Provider (PIP), Jalin begins to transform into a digital enabler that connects the community with financial and non-financial ecosystems, in line with its plan to become “The National Digital Highway”.

Jalin's main services and products focus on the digitalization of banking products, switching services (clearing of ATM cards, debit cards, GPN, and Quick Response Code Indonesian Standard (QRIS)), and virtual ATMs.

Currently, Jalin has more than 60 members from the banking and fintech industries in Indonesia. It is also a member of the Indonesia Payment System Association (ASPI) and a shareholder of PT Penyelesaian Transaksi Elektronik Nasional (PT PTEN) which acts as a Services Institution for GPN.

Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning DigiAsia and the Company’s operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. DigiAsia cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world including those discussed in DigiAsia’s Form 20-F under the headings “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and DigiAsia specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

DigiAsia Company Contact:
Subir Lohani
Chief Financial Officer and Chief Strategy Officer
646-480-0142

Investor Contact:
MZ North America
Email: FAAS@mzgroup.us

FAQ

What is the purpose of DigiAsia's collaboration with Jalin?

The collaboration between DigiAsia (FAAS) and Jalin aims to advance financial inclusion in Indonesia by leveraging Jalin's extensive ATM network and DigiAsia's Embedded Fintech as a Service Platform to deliver innovative financial solutions to underserved populations.

How many ATMs does Jalin's network include in this partnership with DigiAsia (FAAS)?

Jalin's network includes over 52,000 ATMs that will be utilized in the strategic collaboration with DigiAsia (FAAS) to expand financial services accessibility across Indonesia.

What are the key components of the DigiAsia (FAAS) and Jalin partnership?

The key components of the partnership include Cardless Cash Withdrawal (CCW), expansion of Cash Deposit Machines (CDMs), white label ATM solutions, and deployment of merchant kiosks to DigiAsia's 1 million merchants.

How will the DigiAsia (FAAS) and Jalin collaboration impact merchants in Indonesia?

The collaboration will provide DigiAsia's network of 1 million merchants with access to Jalin's merchant kiosks, offering a range of financial services including payments, transfers, and other transactions, which is expected to drive commerce and enterprise business growth.