By Leandra Monteiro

Ayoconnect, Southeast Asia’s largest open finance platform, has launched an open finance API that provides Indonesian businesses, including non-bank financial institutions such as insurance companies and lenders, with capabilities that can instantly debit customers’ savings accounts at multiple banks. The API can be integrated with minimal effort and businesses can save the considerable time and effort required to negotiate terms, sign up and integrate with a bank all at once.

For the first phase of the rollout, Ayoconnect is working with seven of Indonesia’s largest banks to introduce direct debit, accessible through an API. Partner banks include Bank BRI, Mandiri, BNI, CIMB Niaga, Danamon, Bank Syariah Indonesia and Bank Neo Commerce. Together, these institutions provide more than 50% of all bank accounts in the world’s fourth-largest economy by population. The second phase will include BCA, Permata, Bank Jago and NOBU Bank, among others.

Direct debit is a relatively new concept in Indonesia. Ayoconnect Bank of Indonesia’s license – received last month – will reassure users that the technology is properly regulated with consumer protection in mind and is a testament to the quality of FinTech infrastructure and processes. Ayoconnect is currently the only open finance player in the country to have obtained the certification.

The first companies to use Ayoconnect’s new Direct Debit API include digital healthcare provider Milvik Indonesia, investment app GoTrade, as well as a leading digital credit platform. All three will use the API to initiate recurring monthly payments for their customers. GoTrade will also use the API auto-recharge feature – the first Indonesian company to offer this feature to its customers.

Jakob Rost, CEO and co-founder of Ayoconnect, said, “Ayoconnect’s Recurring Direct Debit will be a game-changer for Indonesian businesses and their consumers. By automating recurring direct debits, businesses have complete control over their collections, with the potential to reduce costs and make payment fees more affordable for consumers. »

Wisnu Dharmawan, President Director – PT Milvik Indonesiaadded, “MILVIK is very pleased to partner with Ayoconnect as the service will be able to meet our requirements to provide reliable payment options for our subscription-based digital health products.”

With Ayoconnect’s direct debit facility, businesses of all sizes, including start-ups and SMBs, not just larger, more established companies, can initiate fully digital regular variable payments, as well as one-time payments. of any end customer who has given his consent.

Recurring direct debit also offers Indonesian entrepreneurs the opportunity to launch fast-growing lending services, including buy now, pay later (BNPL), supported by automated monthly collections.

Jakob Rost, CEO and co-founder of Ayoconnect, said, “We are already seeing strong interest from large companies, such as insurers and lenders, who rely on prompt and regular payments to maintain services and control costs. We also believe that recurring direct debits will open exciting new business opportunities for innovative services, such as buy it now, pay later. »