Can Stripe succeed in Indonesia?

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Hello readers,

I love shopping online. My love affair with Shopee has been well-documented, but I also frequently buy directly from sellers through their websites. When I’m at the checkout stage, I often see the words “powered by Stripe” somewhere on the payment page.

The Silicon Valley powerhouse – which is valued at US$95 billion – is one of the largest payment gateway firms in the world, powering payments across a multitude of platforms and for numerous enterprises. It’s now gearing up to expand into Indonesia – but the road ahead looks like a bumpy one.

Today we look at,

• What Stripe is up against in Indonesia
• This Pakistani edtech firm
• Other newsy highlights such as ByteDance’s new offering for kids and Cars24’s latest fundraise

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PREMIUM SUMMARY

The battle of payment gateways in Indonesia

Financial services firm Stripe – best known for powering the payments services of numerous businesses – is looking to enter Indonesia. But the firm certainly has its work cut out for it.

• A crowded space: Indonesia is already home to several notable payment gateway providers such as Doku, Gojek’s Midtrans, and Xendit. Stripe will face stiff competition from these firms, who have been operating for years and have established themselves in the archipelago.
• The right fit: Stripe needs to gain a decent foothold in the payment gateway industry in Indonesia for it to roll out its other products and services. However, it has typically operated in markets with more mature online payment ecosystems, and it may struggle in Indonesia, where card penetration rates are low and alternative payment methods are still on the rise.
• Rules, rules, rules: The stringent regulations of Bank Indonesia would serve as another roadblock – the central bank often puts foreign players in a tough spot. Stripe could work around it through investing in and acquiring local players – although potential regulatory pushback on merger and acquisition activity could cause problems down the line.

Read more: Stripe readies Indonesia entry, but the road just got rougher

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STARTUP SPOTLIGHT

E is for education

Edtech is a booming industry and has the potential to solve many of Asia’s problems around education. We’ve seen a slew of startups in the space raise funds, and that includes Pakistan-based edtech firm Maqsad, which has raised US$2.1 million in a pre-seed funding round led by Indus Valley Capital.

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