Online money transfer service Wise announced that its users in Indonesia will no longer be able to store funds within the app’s e-wallet, effective 23 May 2024.

The Daily Social reported that this change stems from regulatory requirements as Wise currently lacks the necessary license to operate as an electronic money provider in Indonesia, as mandated by Bank Indonesia’s regulation.

Despite this setback, Wise Indonesia’s Country Manager Elian Ciptono assured customers that the core remittance services of the platform will remain operational.

He clarified,

“While the ability to hold balances and make transactions using Wise debit cards will be discontinued, our Indonesian users can continue to enjoy sending and receiving money internationally with the same competitive exchange rates and transparent fee structure they are accustomed to.”

Ciptono also emphasised the company’s commitment to reintroducing and expanding services for Indonesian users in the future.

Wise entered the Indonesian market in 2020 and is backed by its local entity, PT Wise Payments Indonesia, licensed by Bank Indonesia as a Fund Transfer Provider.

In addition to its core services, Wise has been actively seeking partnerships with local entities to bolster its operations in Indonesia.

Notable collaborations include those with Instamoney, a financial API provider within the Xendit Group, and Bank Mandiri, marking Wise’s first integration of its remittance platform into a local bank’s digital banking application.

Featured image credit: Edited from Freepik

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