BBM Money is a peer to peer mobile payments service that was launched late February by Blackberry, in partnership with Bank Permata, and Astra International (AGIT Monitise Indonesia). Despite Indonesia's lower than average rating on Mastercard's Mobile Payments Readiness Index, Indonesia's Blackberry users seem to be perceptive to the idea of mobile money, as the rate of BBM money registrations has been steady, right on track to targets set at 200,000 by year end.
Blackberry is king in Indonesia, accounting for over half of all smartphones sold in the market. On the other hand, Permata Bank is not yet as large as more prominent Indonesian banks like BCA and Bank Mandiri.
BBM Money allows registered customers to buy mobile airtime credit, pay bills, transfer money to bank accounts, and to make real time payments to their BBM contacts who are also subscribed to the service. The money transfer service is integrated with BBM itself, allowing the user to chat, make a P2P payment, then easily return to their conversation.
BBM Money also presents a new opportunity for m-commerce, as some Indonesians also use BBM Groups as a channel to sell goods (with a client survey revealing that 50% of Blackberry users have participated in one). How it works is that one user will post pictures with items they might want to sell, while other group members will bid on the items. BBM Money then presents a more convenient alternative for payment to bank transfers.