[muskitta.com] Wikipedia defines Cryptocurrency as a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.
Bitcoin is known as one good example of Cryptocurrency. Although Bitcoin has been around for quiet a while, its penetration to the Indonesian market not been as successful as predicted by some technologies analysts. This is particularly true for Indonesian markets where markets’ understanding of bitcoin & its adoption rate are very low.
Instead of Bitcoin, Points Rewards scheme takes the prominent role of Cryptocurrency. Points Rewards scheme may not be the appropriate derivative of cryptocurrency – it is however, another form of digital medium of exchange. A much simpler form compared to Bitcoin. The majority of Indonesians know and understand Points Rewards scheme much better than Bitcoin because it is simple to understand and use.
Banks and Cellular Service Providers (CSPs) were among the initial champions in the markets for the Points Rewards scheme. The Indonesian market are familiar with this business scheme as they have been exposed to it for at least the last two decades.
Thank’s to the rapid penetration of mobile/ cellular network services across the country coupled with improving access to broadband network, banks and CSPs market dominance will soon be seized by consumer-based mobile applications that run over the top of the cellular networks such as GoJek, Grab and alike.
Go-Jek is a new market dominating force to be reckoned with in the so-called Points Rewards business spectrum. Started as a market follower to the much bigger & incumbent players like Grab and Uber, Go-Jek has rapidly positioned itself to be the game-changer in the industry. Today, Go-Jek is now the market leader in Indonesia for application-based business domain, not only for the online ride business.
Go-Jek success within the Points-Rewards spectrum is driven mainly by their ability to diversify and enlarge their service offerings to their customers. Unfortunately this swift strategic moves has its own ramification. Go-Jek’s technologies infrastructure allegedly are not built to accommodate the sudden, if not impeteous, service offerings diversification. Customers are experiencing a number of ‘technological glitches’ in the apps that may be due to the rapid increase of orders/ bookings volume among other potential issues.
Ideally, Go-Jek should have considered partnering with Cellular Service Providers (CSPs) prior to making the bold move on diversifying their service offerings. CSPs have the resources and experiences within the Points Rewards business domain as well as mobile applications development and maintenance. Besides, CSPs abundant pool of talents and robust technologies infrastructure may help Go-Jek in reducing their services offerings’ the Time-to-market, one of the key factors in building their competitive advantages.
On the other hand, CSPs may leverage Go-Jek’s existing as well as future customers to their benefits that will lead to building better ARPUs (Average Revenue Per User). After all, customer loyalty is key to maintaining and improving ARPUs and Go-Jek has the critical core ingredient, i.e. large and loyal captive customer bases that offer better consumption behaviors and patterns data.
Furthermore, having strategic cooperation with startups such as Go-Jek requires more than conventional Mobile Financial business approach. In fact, by working with companies like Go-Jek, CSPs have the opportunities to redefine the Mobile Financials business landscape.
Go-Jek is just one example of how Cryptocurrency can really be deployed in mass scale and may achieve its economies of scale in a short period of time. These can only be achieved through collaborative efforts.
[this article is originally written by Elya G Muskitta for muskitta.com]