PemPay revolutionizes mobile payment in rural Indonesia bridging banked and unbanked users

Angela Sujadi

Nov. 18, 2021

PemPay is the first mobile payment solution for the agriculture sector in Indonesia that bridges banked and unbanked users, advancing financial inclusion to facilitate seamless payment across the supply chain.

18 November 2021, Jakarta: PemPem together with Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Linkaja have launched PemPay™, a mobile payment solution for Indonesian agricultural micro enterprises. PemPay is the first mobile payment solution for the agriculture sector in Indonesia that bridges banked and unbanked users, advancing financial inclusion to facilitate seamless payment across the supply chain.

“PemPem builds a mobile supply chain management software for micro-enterprises in commodity supply chains, starting with palm fruit. We believe PEMPAY is an integral step to providing safety, convenience, certainty and flexibility in supply chain transactions,” explained Mrs. De Zegher, Founder and President of Pempem.

Farmers are used to cash payments in Palm Oil, but this can pose a challenge; considering that the average transaction is IDR 7M (about USD 500), there is often insufficient cash on hand. Even when cash is available, counting cash correctly and carrying such large amounts of cash poses a safety risk. While it’s estimated that over 35% of farmers do not have a bank account to receive a digital payment, Pempay provides technology that supports users without bank accounts.

The PemPay Virtual Account payment system is superior to a standard bank transfer as it processes payment to payees immediately. PemPem assigns a unique code 736 to transactions to indicate that it is safe to make the transfer. PemPay also allows for easy checking of payment transfer status through the app, eliminating the need to send transfer receipts over Whatsapp.

PemPay offers free payment transfer between different banks as part of PemPem’s commitment to onboard unbanked users and build a digital payment ecosystem for agriculture micro enterprises.

BNI provides a highly secured banking platform that Pempay connects to for the transaction to happen. The launch of PemPay marks the beginning of innovative banking and financial services towards BNI’s objective of providing a one-stop solution to smallholder farmers.

BRI aims to have 84% of Indonesians participate in the banking system by 2022. “The launch of PemPay will be the start of BRI’s journey to encourage our rural bank account holders to adopt a digital banking solution,” said Pak Arief, Branch Head of BRI Samarinda 2.

PemPay is one of many features PemPem is developing with the aim of improving the livelihoods of agriculture micro enterprises.

About PemPem
PemPem builds mobile supply chain management software for micro-enterprises in commodity supply chains. Our mission is to support a transition out of the informal, cash-based economy into a digital, technology-based one that brings greater efficiency and profit to the value chain, traceability to the supply chain, and sustainability to the sector. 12,000 agriculture micro enterprises in Indragiri Hulu, Indragiri Hilir and Pelalawan are currently using our mobile application, and that number continues to grow.



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Contact
Contact person: Angela Sujadi
Role: Chief Marketing Officer
Email: angela@pempem.org