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TikTok Reportedly Plans to Get Indonesian Payments License

The media reports that TikTok is currently negotiating with regulators in Indonesia in order to obtain a payment license in this country.

TikTok Reportedly Plans to Get Indonesian Payments License

The application of the social media platform, which is part of the ownership structure of ByteDance, received a positive response from the central bank of Indonesia. This information was reported by the media, such statements were not announced at the official level.

If the negotiation process ends positively and regulators decide to grant a payment license, TikTok will be able to benefit from transaction fees. Also, in this case, Indonesian content creators and sellers will be in a better position

Another positive consequence of obtaining a payment license for TikTok will be the opportunity to fully compete with such e-commerce giants in Southeast Asia as Sea’s Shopee and Alibaba’s Lazada.

Currently, the virtual platform serves 125 million Indonesian users. Last year, TikTok carried out 5% of e-commerce transactions in this country, totaling $52 billion. The main part of these operations is related to live broadcasts.

In June, TikTok announced its intention to invest several billion dollars in expanding its operations in Indonesia and Southeast Asia. The implementation of this strategy in the future will allow the company to increase the volume of e-commerce sales from $ 4.4 billion in the gross value of goods to $ 20 billion.

CEO Shou Zi Chew said at a forum organized by TikTok in Jakarta that investments will be directed over the next few years, but did not specify a specific timeframe.

TikTok intends to invest in training, advertising, and support for small sellers who want to connect to its TikTok Shop e-commerce platform. Currently, 2 million small sellers who sell goods in Indonesia interact with the virtual platform. The company also has 800 employees in Southeast Asia.

The media reported that TikTok is looking for an outlet in Southeast Asia to expand its e-commerce business. The company has a particular interest in Indonesia, partly due to the fact that it is here that videos of influential people are popular.

In July, it became known that TikTok could not fully pass the test conducted by the governing body of the European Union. This has led to concerns about the application’s inconsistency with the provisions of the EU’s Digital Services Act. You can fix the shortcomings until January 1, 2024.

In the US, TikTok has faced the problem of attracting sellers due to concerns about the ban on the application by the government of the country. These concerns are not unfounded, since relevant initiatives are being discussed in the United States.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.