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8 Key Figures That Describe Singapore Telecommunications Limited’s Dash For A US$409 Million Opportunity

Singapore’s largest telco, Singapore Telecommunications Limited (SGX: Z74), is extending its money transfer services in Indonesia.

Singtel may be best known for providing mobile services, but it does a lot more than that.

For instance, Singtel’s Dash mobile payment app enables money to be transferred from Singapore to Indonesia. In an announcement yesterday, Singtel revealed that its money transfer service will be expanded as part of a partnership with Indonesian telco Telkomsel.

Here are eight figures that investors may want to know about this deal:

1. The deal will enable Indonesians to send money from Singapore to Indonesia through Singtel’s Dash app. Receivers can cash out at any of the 4,500 post office branches operated by Indonesia’s PT Pos.

2. According to the World Bank’s 2014 Global Findex database, only 36% of Indonesian adults have a bank account. The expansion of this deal is expected to serve the unbanked population in Singapore’s southern neighbour.

3. The market for money transfers between Indonesia and Singapore was estimated to be worth US$409 million in 2015. According to the Indonesian Embassy, there are some 200,000 Indonesians living and working in Singapore.

4. The deal is a sign of how Singtel is leveraging on its network in Asia. Singtel has a 35% effective ownership stake in Telkomsel; this is in addition to minority ownership stakes that Singtel has in other major telcos in the region. The Dash app deal may not move the needle for Singtel’s overall business (Singtel’s revenue is way too large), but it is a sign of the telco’s ability to grow outside its traditional services.

5. On a broader scale, Singtel reported that its Dash customers have grown to almost 500,000 while monthly transactions on the app has doubled over the last six months. The Dash customer count looks significant, but it is a small sliver compared to the 600 million mobile customers that Singtel serves through its wholly-owned operations, subsidiaries, and associates.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.