Wise pauses e-wallet features in Indonesia (Update)

Photo credit: Wise

Fintech firm Wise has announced that it will be cutting support for its app’s e-wallet features in Indonesia, DailySocial.id reported.

The company, which operates as Wise Payments Indonesia in the country, has not obtained a relevant license from Indonesia’s central bank, the report mentioned. Under the 2018 Bank Indonesia regulation, such a license is a requirement for a company to provide electronic money offerings.

Still, the UK-based firm’s remittance services remain accessible to Indonesian users, Elian Ciptono, Wise’s country manager for Indonesia, told Tech in Asia.

Remittance has always been Wise Indonesia’s primary business, Ciptono noted. Local customers, he added, had access to the company’s multicurrency accounts and cards under a license for another Wise entity for a “selected period of time.” According to Ciptono, these services were offered under the central bank’s awareness.

“To avoid confusion about the services offered to customers in Indonesia, moving forward, only remittance services will be available to Indonesian customers,” he said. “As we grow, we hope to bring more products and services to Indonesia over time.”

Founded by Taavet Hinrikus and Kristo Käärmann in 2011, Wise allows users to send and receive money and offers a debit card feature. It entered Indonesia in 2020, now competing with players like Oy and Flip.

Since then, Wise has seen increased usage in the country, reaching nearly one million downloads in total on Google Play by February 2024.

Wise has also since partnered with Bank Mandiri to integrate its international money transfer services into the banking app Livin’.

In July 2021, the firm was listed on the London Stock Exchange at a valuation of US$11 billion.

See also: Regional cross-border payments open new growth avenues for Indonesian fintech

Update (March 6, 11:20 am): Further comments from Elian Ciptono, Wise’s country manager for Indonesia, were added to the article.