Tokopedia’s ewallet freezes some features pending license approval

Indonesia’s online marketplace Tokopedia is putting some of its TokoCash ewallet functions on hold, the firm said in a note to users yesterday.

TokoCash users can still spend the credit they have in their wallet, but starting tomorrow at midnight, can no longer top up.

It’s a roadblock in Tokopedia’s journey to expand the functionality of its ewallet beyond its own platform. The unicorn startup recently raised a massive US$1.1 billion investment led by Alibaba and has added payments-related features.

Tokopedia says the ewallet freeze is temporary, as the company waits for licenses that need to be granted by the central bank, Bank of Indonesia (BI).

“Tokopedia wants everyone to be able to use TokoCash, including outside of the Tokopedia platform,” the note reads. “Tokopedia is in the process of applying for the electronic money license from the Bank of Indonesia.”

The firm hasn’t responded to our request for comment.

A spokesperson from the Indonesian Fintech Association tells Tech in Asia that there is a backlog in application approvals at BI, as the bank is dealing with surging demand not only for electronic money licenses but also those needed to operate ewallets and payment gateways.

This means more startups could be limited in their ability to roll out mobile payments and transaction features.

Last year, fintech for the first time replaced ecommerce as the most-funded startup vertical in Southeast Asia. Developing more efficient payments infrastructure and app-based payments to steer countries like Indonesia away from cash poses an immense opportunity.