Context

Brick, initially a data and verification service provider in Indonesia, identified a gap in the market for comprehensive payment solutions. Despite the existence of various payment gateways, businesses struggled with fragmented services, limited payment method access, and complex integrations.

Hypothesis

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Market Research and Competitive Analysis

Overview

Indonesia's digital payment market has been experiencing rapid growth, with a projected CAGR of 22.3% from 2021 to 2026. Key factors driving this growth include:

  1. Rising internet and smartphone penetration (70% as of 2023)
  2. Government initiatives promoting cashless transactions
  3. Increasing e-commerce adoption (valued at $53 billion in 2022)
  4. Growing fintech ecosystem (over 300 fintech companies as of 2023)

Payment Landscape

  1. Bank Transfers: Still the most popular method for online transactions (40% market share)
  2. E-wallets: Rapidly growing, with 38% market share in 2023
  3. Credit/Debit Cards: 15% market share, mainly in urban areas
  4. Other methods (BNPL, Cryptocurrency): 7% combined market share

Competitive Analysis

Major Players M*** X**** D**** O******
Strength Wide range of payment methods, strong brand recognition Modern API, good documentation, focus on developer experience Long-standing presence in the market, trusted by large enterprises Specializes in alternative payment methods, strong in e-wallet integrations
Weakness Complex pricing structure, occasional downtime issues Higher prices for some services, limited coverage in rural areas Outdated user interface, slower adoption of new technologies Limited traditional banking integrations, smaller merchant base

Competitive Landscape

Feature M*** X**** D**** O****** Brick (Proposed)
Bank Transfer Support ✓✓✓ ✓✓✓ ✓✓ ✓ ✓✓✓✓
E-wallet Integration ✓✓ ✓✓ ✓ ✓✓✓ ✓✓✓
Virtual Account ✓✓ ✓✓✓ ✓ ✘ ✓✓✓
Real-time Processing ✓ ✓✓ ✘ ✓ ✓✓✓
API Documentation ✓✓ ✓✓✓ ✓ ✓ ✓✓✓
Pricing ✓✓ ✓ ✓✓ ✓✓ ✓✓✓
Customer Support ✓✓ ✓✓ ✓ ✓ ✓✓
Additional Services ✓✓ ✓✓ ✓ ✓ ✓✓✓

Legend: ✓ = Basic offering or limited capability ✓✓ = Good offering or capability ✓✓✓ = Excellent offering or capability ✓✓✓✓ = Industry-leading offering or capability ✘ = Feature not offered

Key Market Insights

  1. Fragmentation: The market is fragmented, with businesses often needing to integrate multiple providers to cover all payment needs.
  2. Reliability Issues: Existing solutions face occasional downtime, especially during high-traffic periods (e.g., major sales events).
  3. Integration Complexity: Many businesses find current APIs complex to integrate, leading to longer implementation times.
  4. Pricing Concerns: Smaller businesses often struggle with the pricing structures of major providers, which can be opaque or unfavorable for low volumes.
  5. Limited Rural Coverage: Most providers focus on urban areas, leaving a gap in rural market coverage.
  6. Growing Demand for Real-time Transactions: With the introduction of BIFAST, there's increasing expectation for real-time payment processing.
  7. Need for Comprehensive Solutions: Businesses express frustration at needing multiple providers to cover all their payment needs.

Market Opportunity

Based on this analysis, there's a clear opportunity for Brick to enter the market with a solution that addresses these pain points:

  1. Offer a unified API covering all major payment methods
  2. Provide superior reliability through robust infrastructure
  3. Simplify integration process with clear documentation and support
  4. Implement a transparent and competitive pricing structure
  5. Expand coverage to underserved rural areas
  6. Leverage BIFAST for real-time transactions across a wide network
  7. Bundle additional services (e.g., data enrichment, verification) for a comprehensive offering

The Audience

Persona Tech-savvy CFOs and CTOs of medium to large enterprises Founders and developers of startups and SMEs Financial managers of traditional businesses looking to digitize operations
Use Cases E-commerce platforms processing high volumes of transactions Digital lending companies requiring real-time disbursements Traditional businesses automating salary payments and vendor invoices
Frustrations 1. Limited payment method options with current providers

  1. High transaction costs eating into profit margins | 1. Unreliable services causing customer dissatisfaction

  2. Complex integration processes slowing down implementation

  3. Lack of real-time transaction capabilities | 1. Complex integration processes slowing down implementation

  4. Lack of real-time transaction capabilities |

User Insights

While businesses already use payment gateways, they express a need for additional routing options to:

Big Takeaways