PT Midtrans, operating as Veritrans Indonesia, announces that it will officially begin operations as a new online payment gateway for the Indonesian market. The service has already soft launched with Sribu (www.sribu.com), a design marketplace, in August 2012, with KrazyMarket in September 2012, with Qeon Interactive and BerryBenka in October 2012, and it targets to add hundreds more to its payment platform over the next 12 months. PT. Midtrans is a joint venture between VeriTrans Inc., Japan’s largest payment processor, netprice.com, a leading Japanese eCommerce company, and PT Mitratama Grahaguna, an Indonesia-based investment arm of Midplaza Holdings.
VeriTrans Inc. is a leading innovator in the payment processing industry and was the first in Japan to implement the Payment Card Industry Data Security Standard (PCI-DSS). VeriTrans 3G, the company’s flagship product, represents technological leadership in terms of security, ease of use, and reliability. Furthermore, VeriTrans has established key partnerships with payment industry players in China as part of its strategy to broaden its operations across Asia. VeriTrans is the first online payment gateway outside of China that has established a direct connection with China Union Pay’s payment network. The launch of PT Midtrans’s payment gateway service in Indonesia represents a further step towards VeriTrans’s growth strategy.
Speaking on the behalf of VeriTrans, Takashi Okita, Chief Executive Officer, stated “We are very excited to be able to extend the VeriTrans technology to the Indonesian market. Our Indonesian partner, The Midplaza Holdings, brings a wealth of experience and relationships that will prove invaluable as we move forward. PT Midtrans and our partners will work closely with merchants and users to grow the Indonesian eCommerce market together.”
According to a recent study conducted by Veritrans and DailySocial on the Indonesian eCommerce market, the size of the eCommerce market in Indonesia is approximately $1bn and is expected to grow exponentially over the next 3-4 years driven by the rising middle class, growing internet population, and increasing spend online.
On the growth prospects of Indonesia’s eCommerce market, Ryu Kawano Suliawan, co-Founder of PT Midtrans, states, “The Indonesian online market is on the cusp of significant growth. However, payments have always been a major hurdle for eCommerce companies operating in Indonesia. PT Midtrans is committed to solving this issue by offering a secure, reliable and merchant friendly online payment solution that is trusted by Indonesian consumers. We aim to serve all Indonesian eCommerce companies, whether they are a startup or a large multi-national company.”
About the Joint Venture Partners
VeriTrans Inc. – VeriTrans Inc., Japan’s largest online payment gateway with a market share exceeding 30%, provides payment solutions to more than 4,000 merchants. Established over 14 years ago, VeriTrans enjoys strong relationships with Visa, MasterCard, PayPal and China Union Pay. In addition to its domestic payment processing business unit, the company’s consolidated group includes NaviPlus, http://www.sbi-navi.co.jp/ (Japanese only) an internet recommendation engine company and e-cure http://www.ecure.jp/ (Japanese only), an internet security solutions firm. VeriTrans Inc. is a wholly owned subsidiary of Digital Garage, http://garage.co.jp/eng
netprice.com, Ltd (TSE: 3328) – netprice.com, http://www.netprice.com/, is one of Japan’s leading internet eCommerce companies. Netprice generates over $135M in revenues annually and has strong links with the Web 2.0 community in Japan. Having successfully traversed the tumultuous evolution of Japan’s eCommerce industry, Netprice brings strong industry expertise and insights to the venture regarding the future development of the Indonesian eCommerce space.
PT. Mitratama Grahaguna – PT Mitratama Grahaguna is an Indonesian-based investment company which forms part of MidPlaza Group. Midplaza, through its affiliate Biznet, is one of the early pioneers in the Indonesian internet space and has continued to invest heavily in the sector. Biznet is currently developing Indonesia’s largest Tier 3 data center (Opening mid year 2012), and has over 10,000 km of fiber-optic cables throughout Indonesia. Midplaza Group’s other businesses include high end hotel development and ownership of: among others, MidPlaza 1 and MidPlaza 2 Office Towers located in Jakarta’s central business district, Ayana Resort and Spa, Bali – the highly acclaimed resort destination which has recently been awarded as Asia’s Best Resort, and Hotel Intercontinental Midplaza.