E-payments a ‘cash-burning exercise’: VC

THE venture capital arm of PT Bank Mandiri thinks electronic payment platforms will only ever be profitable by serving as gateways to more lucrative services. Otherwise, they’re “just a cash-burning exercise,” said Eddi Danusaputro, chief executive officer of PT Mandiri Capital Indonesia.

The race for customers in Indonesia is so intensive that e-payment providers have been willing to offer steep enticement discounts, calculating that the immediate cash hit is worth it in order to secure a bigger market share, said the CEO in an interview.