Flip to Expand Market Reach, Introducing Remittance for B2B
This features covers Singapore, Malaysia, Thailand, Japan, UK, Australia and Germany
International money transfer has become common activity for some customers. With the rapid increase of this kind of financial activities, many financial institutions offer various features to simplify the transactions, including remittance.
Startup that offers the cross-bank transfer, Flip, is now adding the remittance feature for its B2B solution, Flip for Business. Through this feature, a company can transfer cash up to 1.000 bank accounts abroad with a competitive fee, both to personal and business account in real-time.
Since January 2022, this feature is available to use by entrepreneurs for transactions with partners or suppliers abroad altogether. Also, Flip has obtained a license from Bank Indonesia to operate International Transfer feature. There are no hidden fees charged on every transaction and the exchange rate is relatively competitive with other players.
To date, Flip for Business' International Transfer feature is available for several countries, including Singapore, Malaysia, Thailand, Japan, UK, Australia and Germany. Those are the most in demand countries by Indonesian entrepreneurs. Furthermore, Flip is seeking to expand the scope of its services to more countries.
This service is also a form of Flip’s effort to facilitate and support money transfer between countries, particularly from Indonesia to other countries. Previously, Flip has been providing International Transfer feature called Flip Globe. Every individual or entrepreneur is able to use this feature to send money up to 48 countries.
“Flip is expecting to be able to continuously support more companies and business owners in Indonesia through B2B finance solution, not only for both domestic and international money transfer, but also for payment. Through this initiative, we are expecting to support every segment of finance transaction, in line with our tagline, #FlipBuatSemua or Flip for all,” Henri explained.
Flip announced the rebranding of its B2B solution from “Big Flip” to “Flip for Business” in early this year. The transformation was backed with financial transaction automation solutions powered by the latest technology such as dashboard for no-code solution, API for seamless integration, extension features like verification and idempotency key.
There are three primary features, including Money Transfer which allows partner to transfer funds up to 20.000 bank accounts with just few clicks; Accept Payment which provides simple and real-time payment for client’s customers; International Transfer which enables users to save transfer fee up to 50% to seven countries.
Within 7 years of operation, Flip’s B2B solution has grown significantly amid the increased technology adoption. This service has been utilized by hundred companies and SMEs (small and medium-sized enterprises) in Indonesia and served more than seven million users to process various financial transactions both from and to various regions in Indonesia as well as overseas remittance.
In late 2021, the platform founded by Rafi Putra Arriyan, Luqman Sungkar and Ginanjar Ibnu Solikhin managed to secure a Series B funding of 48 million dollars led by Sequoia Capital India, Insight Partners and Insignia Ventures Partners.
Remittance for B2B
Indonesia's remittance market, both in terms of business and users, is still very fragmented. In fact, this service has been provided by almost every bank in the country. Most of the users are migrant workers or overseas students.
Bank Indonesia (BI) recorded remittances from Indonesian migrant workers amounted to $2.28 billion or equivalent to Rp33 trillion (exchange rate of Rp14.496/$) in the second quarter of 2021. Those amounts increased by 0,75% compared to the first quarter of 2021 at US$ 2.26 billion (month to month/m-to-m).
In addition, the Micro-Small and Medium Enterprise (MSME) sector in Indonesia is currently growing. Driven by technology and digital transformation, entrepreneurs are now able to sell their products overseas. In this case, the opportunity for remittance apps for business is definitely getting bigger.
There are already several non-bank players in Indonesia that provide similar service and are focusing to serve B2B including Wallex Technologies which was recently acquired by M-DAQ, RemitPro as a part of Digiasia Bios. In addition, there is Transfez that is said to be expanding its service to the B2B payment sector after securing a funding led by East Ventures and BEENEXT.
–Original article is in Indonesian, translated by Kristin Siagian