How WhatsApp might get around Indonesia’s tough licensing regulations

Facebook’s messaging service might be about to strengthen its position in the Asian payments market as WhatsApp is rumoured to be talking with Indonesian digital payment firms.

Apparently, WhatsApp is angling to take a step into the market by leveraging the power of several local companies, people familiar with the matter told Reuters.

If true, the messaging company would serve as a platform to support these firms’ services.

That would be different from how WhatsApp plans to roll out its services in India, where it plans direct peer-to-peer payments. It is currently waiting for approval from regulators to launch this service in India.

The reason for WhatsApp opting for an alternative method to get into Indonesia could be a way to get around the country’s tough licensing regulations.

Reuters speculated that the rumoured push into Indonesia could be a way for WhatsApp to tap into the country’s e-commerce market. The market is expected to rise to a worth of $100m by 2025. That’s three times its current value.

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