XOX Media, the wholly-owned subsidiary of XOX Berhad, PT Inovasi Telematika Nusantara and Nahdlatul Ulama (NU) jointly launched NU Mobile, a SIM-less mobile payment application with e-wallet capabilities aimed at providing a secure, convenient and fast option to serve more Indonesians, especially the unbanked population.
The NU Mobile application was developed on XOX’s proprietary Voopee SIM-less mobile solution in collaboration with Inovasi Telematika Nusantara, an Indonesian telecommunications services provider and NU.
NU is the largest independent Islamic organisation in the world, that is also a charitable body, funding schools and hospitals as well as organising communities to help alleviate poverty. NU has approximately 94 million members in Indonesia.
A recent report highlights that only 36% of Indonesia’s population is connected to formal financial institutions, leaving an estimated 110 million unbanked citizens due to banks’ higher fees, and long distances to branches .
The NU Mobile application will offer SIM-less mobile services towards government, banking, education and e-wallet for NU members. XOX provided the relevant technology, while PT Inovasi will provide the on-going technical and maintenance support. Pengurus Besar Nahdlatul Ulama (PBNU) will distribute and market the application to its members.
The launch of the NU Mobile application comes at a time when the Indonesian mobile payment market is expected to record a CAGR of 72.3% during 2017-2021 to reach USD14billion in transaction value terms by 2021, increasing from USD1.6billion in 2017. In 2016, the market registered a growth rate of 88.9% over 2015, to reach US$ 893 million .
XOX Media is believed to be among the first Malaysian companies to provide its proprietary e-wallet solution to a market as large, and geographically distributed as Indonesia. With a population of 261 million, Indonesia is the 4th most populous country in the world, and the 14th largest with a land area in excess of 1.9 million square kilometres.
The collaboration with PT Inovasi and PBNU is for ten years and may be renewed for another ten years with the agreement of all parties. Once the NU Mobile application has been fully deployed and commercialised, it is expected to have positive contribution to the future earnings per share and net assets per share of the group.
Following the launch of the NU Mobile application for the Indonesian market, XOX is expected to introduce a similar e-wallet application for the Malaysian market, as collaborations with multiple merchants are being carried out. The Malaysian e-wallet application is expected to be launched in the first quarter of 2018.