Grab, Gojek draw new battle lines in Indonesia's rural areas

Singapore

SUPER app rivals Grab and Gojek might be fighting it out in the first-tier cities of Indonesia, but both players know that the real battle to be won is out in the countryside.

It is where established financial institutions know it doesn't make financial sense to set up physical branches, making the digital financial services space a big, untapped growth area.

In the race to acquire users in these areas, Grab is in talks to merge Indonesian payments firm Ovo with Ant Financial-backed DANA, Reuters reported on Wednesday, citing sources. Fintech platform DANA is eyeing expansion in rural Indonesia to set itself apart in digital payments, news site DealStreetAsia reported.

In the other corner, Grab's rival Gojek is planning to integrate LinkAja, a mobile wallet aiming to increase financial inclusion in remote areas, with its platf…