Wise to Discontinue E-Wallet Holdings in Indonesia Amid Licensing Challenges
by Fintech News Singapore March 5, 2024Online money transfer service Wise announced that its users in Indonesia will no longer be able to store funds within the app’s e-wallet, effective 23 May 2024.
The Daily Social reported that this change stems from regulatory requirements as Wise currently lacks the necessary license to operate as an electronic money provider in Indonesia, as mandated by Bank Indonesia’s regulation.
Despite this setback, Wise Indonesia’s Country Manager Elian Ciptono assured customers that the core remittance services of the platform will remain operational.
Elian Ciptono
He clarified,
“Wise Indonesia’s primary business has always been remittance, in accordance with our local license, and this business has been growing fast. Indonesian customers were able to use our multi-currency account and card under another Wise entity license for a selected period of time, which has been done under Bank Indonesia’s awareness.
To avoid confusion about the services offered to customers in Indonesia, moving forward, only remittance services will be available to Indonesian customers. As we grow, we hope to bring more products & services to Indonesia over time.”
Wise entered the Indonesian market in 2020 and is backed by its local entity, PT Wise Payments Indonesia, licensed by Bank Indonesia as a Fund Transfer Provider.
In addition to its core services, Wise has been actively seeking partnerships with local entities to bolster its operations in Indonesia.
Previously, Bank Mandiri had integrated Wise Platform’s API for their Livin’ by Mandiri app to facilitate cross-border transfers. This collaboration allows Bank Mandiri to offer its customers efficient and affordable international money transfer options directly within their banking app.
Additionally, Wise also collaborates with Instamoney as its local partner in Indonesia for domestic remittances.
This article was updated on 7 March 2024 (12.30 pm) to include additional information from the Wise team.
Featured image credit: Edited from Freepik
