As the nation enters the digital era, most people have yet to embrace simplified payment options. Indonesians are still opting for cash rather than debit or credit cards for their purchases. Although the option is widely available at middle- and high-end establishments, smaller businesses generally still only accept cash.
Teddy Tee, founder and chief executive of Cashlez, is aiming to change this by providing small businesses with the option to process digital and card transactions.
Gilang Al Farisi
As Indonesians are fast to adopt digital technologies and everything that goes with that, there are increasingly fewer people who do not know about cashless transactions or digital payment methods, such as Go-Pay. Unfortunately, cash is still the only option for many transactions.
Cashlez, a financial transaction technology company, provides a solution for small businesses and gives them the option to accept digital payments. The do this, Cashlez created a mobile point-of-sale system, or mPOS, which allows small businesses to accept credit or debit card transactions. The system uses a smartphone application on any device connected to a card reader through Bluetooth. The payment system also allows for the processing of payments using QR codes and Cashlez Link.
Complementary to the development of the payment system, Cashlez also developed a matching point-of-sale and back-office reporting system to make it easier for merchants to manage their businesses. The system allows for the monitoring of all transactions in real time, while also recording them for later review.
Other than equip small businesses with a transaction tool, the company's goal is to capitalize on the expected increase in foreign tourism. Teddy said many tourists visiting Indonesia often find it difficult to buy something from small businesses, such as warung.
"These tourists would often have to depend on minimarts, which have limited operating hours, or they need cash," Teddy said.
The company said its product would make life easier for traditional vendors in popular tourism areas. While most can currently only accept cash rather than digital or card payments, the application allows the processing of small transactions.
"Often times, when consumers want to purchase something with a card, they have to buy something that exceeds the minimal transaction amount," Teddy explained. "This can be a problem for both the consumer and the business, and Cashlez aims to solve that."
Another advantage Cashlez offers small businesses, is the ability to set the prices of their products. "This will give merchants better control over the wares they sell in their stores," Teddy said. "Sometimes, employees mark up the prices of items and pocket the difference. The application ensures that the price of the product is the same as what the owner decided."
Owners can thus manage their businesses more efficiently, which allows them to focus on other matter. With the versatility Cashlez offers, the ability to process various types of card payments from partnered banks and various digital payment platforms, the company also helps businesses to remove the clutter of having separate a card reader for every digital payment service.
"Clients will only need our card reader, which is designed to process various forms of payment," Teddy said. The Cashlez card reader is a separate device that works in conjunction with the smartphone app, and it can process various bank cards, either equipped with electronic chips or magnetic strips. It can also process payments from other app-based payment services, such as Go-Pay and OVO.
The development of the Cashlez payment platform allows small businesses to reach markets that were not previously available to them. The company already collaborates with several national banks and it has a presence in most larger cities.
"Our plan is to capitalize on the tourism industry in Indonesia; that is why we have been making inroads in areas such as Bali, Surabaya and other places that attract large numbers of tourists," Teddy said. The company also works with e-commerce firms to simplify their payment systems and extend their reach.