In a recent development, Wise, the popular online money transfer service, has announced its decision to discontinue e-wallet services for its users in Indonesia due to licensing Challenges. Effective from May 23, 2024, Wise users in Indonesia will no longer be able to store funds within the app’s e-wallet. This decision comes as a result of 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.
Background: Wise’s Entry to Indonesian Market
Wise entered the Indonesian market in 2020 and has been backed by its local entity, PT Wise Payments Indonesia, which is licensed by Bank Indonesia as a Fund Transfer Provider. While Wise has been successful in providing core remittance services to Indonesian customers, the discontinuation of its e-wallet services is a setback for users who have been utilizing the platform for storing funds.
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Reasons for Discontinuation
The discontinuation of Wise’s e-wallet services in Indonesia is a direct consequence of regulatory challenges. Bank Indonesia requires electronic money providers to obtain a license to operate in the country, ensuring compliance with regulations and safeguarding customer interests. Wise’s lack of the necessary license has compelled the company to discontinue e-wallet services to comply with regulatory requirements.
Impact on Users
With the discontinuation of e-wallet services, Wise users in Indonesia will no longer be able to store funds within the app’s e-wallet after May 23, 2024. However, it is important to note that Wise’s core remittance services will remain operational. Indonesian customers will still be able to utilize the platform for cross-border money transfers, which has been the primary focus of Wise’s operations in the country.
Assurances from Wise
Elian Ciptono, Wise Indonesia’s Country Manager, has assured customers that despite the discontinuation of e-wallet services, Wise remains committed to providing reliable remittance services in Indonesia. Ciptono emphasized that Wise’s primary business has always been remittance, in accordance with their local license. He expressed optimism about bringing more products and services to Indonesia as Wise continues to grow.
Partnerships and Collaborations
To bolster its operations in Indonesia, Wise has actively sought partnerships with local entities. For instance, Wise collaborated with Bank Mandiri, integrating Wise Platform’s API into their Livin’ by Mandiri app to facilitate cross-border transfers. This collaboration allowed Bank Mandiri customers to access efficient and affordable international money transfer options directly within their banking app. Additionally, Wise partnered with Instamoney as its local partner in Indonesia for domestic remittances.
Wise to Cease E-Wallet Services in Indonesia
The discontinuation of Wise’s e-wallet services in Indonesia is a result of licensing challenges and regulatory requirements imposed by Bank Indonesia. While this decision may inconvenience users who relied on the e-wallet feature, Wise remains committed to providing reliable remittance services in the country. As Wise continues to grow, it aims to expand its product offerings and services in Indonesia.
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