Joshua D'Costa
Growth & Marketing
Jun 23, 2025
|
5
min
Indonesia’s digital economy is projected to surpass $130 billion by 2025, driven by a young, mobile-first population. Internet penetration has reached roughly 79.5% (about 221.6 million people) in 2024.
This means SaaS founders have a huge local audience, as well as growing international demand. To capitalise on global opportunities, Indonesian SaaS businesses cannot rely on basic payment solutions. They need a simple way to accept any currency and comply with overseas taxes.
This is where a Merchant of Record (MoR) comes in: a MoR like Dodo Payments manages international payments and compliance so you can focus on building your product, not on building a global payments team.
Source: Wikipedia
Cross-Border Challenges for Indonesian SaaS
Local payment gateways like Midtrans, Xendit, DOKU, etc, are optimized for the domestic market. For example, Midtrans only processes transactions in Indonesian Rupiah (IDR).
Similarly, Stripe’s Indonesian accounts accept only IDR and do not support cross-border transactions, plus it’s available through an invite-only program. In practice, this means an Indonesian startup must open foreign entities or use convoluted workarounds to take USD/EUR payments. Each payment provider has its API and requirements, so entering a new market often demands a separate integration and local legal setup.
Meanwhile, popular global payment methods like PayPal, international credit cards, foreign wallets are difficult to plug in with Indonesian merchant accounts.
As a result, many potential foreign customers can’t pay directly, leading to lost sales or manual processing. Notably, about 20% of Indonesians’ online purchases are already cross-border, so tapping international demand is a huge opportunity that local gateways alone cannot unlock.
Benefits of Using an MoR in Indonesia
A Merchant of Record can dramatically simplify global sales for Indonesian SaaS companies. Key benefits include:
Instant global reach: One integration and an MoR lets you accept payments worldwide (multiple currencies, cards, wallets, etc.). You don’t need to onboard each country’s gateway or banks.
Automated tax & compliance: A Merchant of Record handles local VAT/sales tax registration and remittance for you. It ensures your transactions meet each country’s financial rules, freeing you from complex filings.
Payments & reporting: All international revenues flow through the MoR, which simplifies accounting. Many MoRs offer daily or fast payouts, improving cash flow and reducing currency conversion delays.
Fraud and chargeback protection: The MoR assumes liability for fraud, disputes and chargebacks. Advanced fraud-detection tools are typically built in, protecting revenue without you lifting a finger.
By outsourcing these burdens, Indonesian founders can scale internationally much faster.
How to Choose the Right MoR
When selecting a payment gateway, consider the following:
Ensure the platform supports major currencies like USD, EUR, and IDR.
Look for providers that offer diverse payment methods, including B2C and B2B transactions.
Choose a gateway that integrates with popular e-commerce platforms like Shopify and WooCommerce.
Prioritize platforms with robust security features, including SSL encryption and fraud detection.
Dodo Payments
At Dodo Payments, we understand that expanding your business globally can be challenging, especially when you’re dealing with complex regulations and payment hassles.
Here’s how we make your life easier:
Seamless Global Payments
With Dodo Payments, businesses can accept payments from customers worldwide in multiple currencies. Whether it’s USD, EUR, or IDR, our platform ensures smooth and hassle-free transactions.
Regulatory and Tax Compliance
We take care of all tax obligations, including VAT and GST, so you don’t have to. Our automated compliance system ensures that your business stays compliant with Indonesian taxes and international regulations.
Reliable Payouts
Say goodbye to delayed payments. Dodo Payments ensures timely and secure payouts, so you can focus on growing your business.
No Need for Foreign Business Entities
Using Dodo Payments, you can sell internationally without setting up a foreign business entity or bank account. This eliminates unnecessary costs and complexities, making global expansion simpler than ever.
Final Thoughts
As your Merchant of Record, Dodo Payments will help you overcome the challenges of cross-border payments, taxes, and regulatory compliance. Our platform is designed to help businesses thrive in the global market, offering seamless payments, reliable payouts, and hassle-free tax handling.
