How does Xendit work?

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Founded in 2015, Indonesian-payment infrastructure startup Xendit has raised $64.6 million in a Series B round, led by Accel. Xendit is the first Indonesian company to go through Y Combinator’s accelerator program and they have made waves in the industry ever since.

In this article, we will explore how Xendit works and how they revolutionize payment transactions in Indonesia.

Overview of Xendit

Xendit is a payments infrastructure startup, headquartered in Jakarta, Indonesia. The company provides businesses with digital payment solutions and technologies that make collecting payments from customers worldwide easier. Xendit was founded in 2015 and is the first Indonesian company to go through Y Combinator’s accelerator program.

Xendit offers a suite of digital payment solutions for businesses of any size, including online payments, collection services, invoicing options and more. The company also provides an open API platform for developers to integrate Xendit’s services into their web or mobile apps.

Xendit has recently announced that they have raised a $64.6M Series B led by Accel to fuel their international expansion. This will enable them to further develop their product pipeline and position themselves as a global payment technology leader. Xendit’s mission is to become the global standard for financial operations (payments, collections and access to credit) providing faster, cheaper and more secure solutions using data-driven technologies such as machine learning & AI enabled experiences.

Overview of Y Combinator

Y Combinator is a startup accelerator based in the San Francisco Bay Area that provides seed funding for startups. Established in 2005, Y Combinator is widely recognized as one of the most prestigious accelerators for seed funding. The accelerator invests up to $150K per startup in batches of two every 3 months; providing participation and access to resources and mentorship during their tenure with YC.

Startups accepted by Y Combinator are invited to participate in an intensive 3-month mentorship program including networking, unique resources and guest speakers from across different industries. In exchange for a 7-10% equity stake in the startups, YC provides mentoring from experienced entrepreneurs such as Paul Graham, Jessica Livingston and Robert Morris, among others; training and support throughout the life of the startup; access to exclusive investor functions; introductions to potential partners; and exposure through national news outlets like TechCrunch, Venture Beat, etc.

By guiding startups through the early stages of their development and helping them network with investors, Y Combinator has become an important player in venture capital markets worldwide. Having incubated many successful companies including AirBnB, DoorDash and Dropbox; it has now become more readily accessible than ever before – with more than 20 affiliated offices around the world including Singapore, Melbourne and London.

Xendit’s Products and Services

Payments infrastructure startup Xendit, the first Indonesian company to go through Y Combinator’s accelerator program, has raised a $64.6M Series B led by Accel.

Xendit offers a suite of products and services meant to provide the best solutions for businesses to handle payments. From a comprehensive API to payment acceptance solutions, Xendit provides many ways to make the most of your payments infrastructure, allowing businesses to save money, create efficiencies, and increase customer satisfaction.

Let’s take a closer look at Xendit’s products and services.

Payment Processing

Xendit is a payments infrastructure startup that seeks to make payments simpler, faster and more secure for businesses and their customers. The company provides payment processing services that facilitate accepting payments from customers worldwide. With its cutting-edge technology, Xendit’s payment infrastructure helps reduce fraud and increase compliance with international regulations.

Xendit supports online payments and recurring billing solutions, allowing businesses to collect customer payments easily and automatically. In addition, with its payment gateway integration tools, businesses can integrate one or more payment methods into their existing checkout flow quickly and easily.

Moreover, Xendit’s intuitive dashboard offers real-time insight into transaction data such as sales analytics and customer trends, enabling better business decision-making. Finally, 24/7 technical support is also available for customers facing any issues or requiring assistance with integrating its payment gateway solution into their systems.

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Money Transfer

Xendit’s Money Transfer product enables users to send and receive payments instantly. This includes both domestic and cross-border money transfers, meaning you can send money to friends, family or anyone else anywhere in the world. In addition, each transaction is verified by two security measures — a PIN and SMS OTP — which makes it secure and traceable.

Furthermore, this feature also allows users to store virtual funds in their Xendit accounts for future use in online purchases, mobile top-ups or cash withdrawals. Additionally, Xendit’s real-time transfers are instantaneous and reliable — user deposits usually take less than 5 minutes when entered correctly. Quick transfers make it convenient for users who need to transfer large amounts of money without having to wait for days for clearance.

Virtual Accounts

Virtual Accounts is one of Xendit’s products and services. It enables customers to securely receive payments from their customers without requiring a bank account. The Virtual Account essentially serves as a “branchless” banking service that simplifies the process for receiving payments.

Customers can open virtual accounts in a matter of minutes, specify the amount they want to accept, and share invoices with their customers via email or SMS. When customers make payments, they simply pay into the account. Whenever someone pays an invoice, they are notified immediately via email or SMS so they know when the payment has been received.

The Virtual Account also makes it fast and easy to track payments with real-time updates backed by tracking technology that can detect when funds have been received. In addition, customers can store multiple currencies in the same account so that their accounting software can easily handle cross-currency transactions. Finally, merchants can use any preferred payment method like debit cards or international transfers with no transaction fees involved when using Xendit’s Virtual Accounts solution.

Xendit’s Business Model

Payments infrastructure startup Xendit, the first Indonesian company to go through Y Combinator’s accelerator program, has raised $64.6 million in a Series B round led by Accel. This raise brings the company’s total funding to over $116 million.

Xendit’s business model is based on providing payment infrastructure solutions to businesses in Indonesia and other countries in Southeast Asia. Let’s take a look at what Xendit does and how it works.

Revenue Streams

Xendit is a payments infrastructure startup that is changing how people send, receive, and spend money across Southeast Asia. Xendit provides businesses of all sizes with access to modern payment solutions including debit and credit cards, e-wallets, mobile banking, bank transfers, cash payments and online invoicing solutions. With the recent $64.6 million Series B round led by Accel, Xendit is poised to become a major player in the Payments-as-a-Service space.

Xendit’s business model revolves around providing businesses with access to these various payment options through several revenue streams:

-Payment Services: Xendit processes payments securely for businesses via their channel or through third party sources like global payment brands such as Visa or MasterCard;

-White Label Services: Xendit provides customers with custom branded payment portals for use on their websites and apps;

-Recurring Payment Solutions: This includes subscription models for SaaS platforms and other services that need recurring billing models handled automatically;

-Enterprise Solutions: Xendit powers larger scale clients such as banks who want scalable API based services for commercial needs;

-API Consulting Services: Writing custom API integration services for companies who want to make use of existing cloud technologies or need assistance migrating from legacy software into APIs.

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Pricing Model

Xendit is a payments infrastructure startup focused on providing connectivity between buyers and sellers. It allows businesses to accept credit, debit, prepaid cards and bank transfers securely and easily. Xendit offers various pricing plans based on the levels of services needed by customers. For example, the company’s payment gateway can send or receive money at no extra cost, while its remittance platform charges 0.25% of the total amount transferred.

Additionally, Xendit charges transaction fees for each transaction made with its payment gateways, ranging from 0.7% to 2%.

In addition to its straightforward pricing model, Xendit offers advanced features such as user authentication, order management and fraud protection that come with specialized prices depending on the customer’s requirements. Because of these additional features available through Xendit’s platform, customers are able to develop more sophisticated payment systems for their businesses and customers alike.

Xendit’s Technology

Xendit, the payments infrastructure startup, is a technology-driven solution that provides payment processing solutions and financial services to businesses in Indonesia. As the first Indonesian company to go through Y Combinator’s accelerator program, Xendit recently raised a $64.6M Series B, led by Accel.

How exactly does Xendit work? First, let’s look deeper at Xendit’s technology and framework.


Xendit uses APIs as the primary technical infrastructure for its payments processing system. APIs create a language between two applications that allows one to communicate with and access data from another. Xendit offers a suite of APIs for merchants, businesses, and financial institutions that provide connectivity to the digital payments ecosystem. These APIs include advanced fraud prevention, risk management, and reporting analysis tools.

Merchants and businesses can also use Xendit’s APIs to integrate their payment processing requirements with their own existing application stack—from third-party billing systems and shipping integrations to loyalty services or enterprise resource planning (ERP) systems.

Additionally, they can access automated notifications whenever changes in status/payment occur. For example, a merchant might benefit from being able to receive email notifications when payments have been received or when outstanding payments are due.

Financial institutions benefit from secure access to all of Xendit’s APIs and developer resources with modern authentication methods such as OAuth 2.0 or App ID+Secret token encryption. They can use these resources to enable instant funds disbursement via QR code or bank transfer options at checkout enabling customers to pay securely in-app faster than ever before while reducing overall costs associated with online payment acceptance (such as fraud & chargeback fees).

Moreover, financial institutions can increase transparency and traceability by utilizing blockchain technology for tracking digital assets across secured ledgers at each transaction touchpoint paired with real-time analytics that provide insight into cash flow optimization and ensure regulatory compliance from both internal & external sources.


At Xendit, security is of utmost importance. Xendit has built strong monetary and data security protocols to deliver a secure and reliable payments infrastructure. All transactions are secured via authentication methods such as OTP (One Time Password), encryption technology and

PCI-DSS compliant data storage, providing customers with higher transaction protection.

Xendit’s proprietary fraud detection system, called X-Protect, uses advanced machine learning algorithms to detect and prevent fraudulent transactions without interfering with legitimate customer transactions. In addition, the system continuously evolves by learning from past incident experiences, thus becoming better at identifying attempts at fraud in real-time.

Aside from monitoring and detecting fraudulent activities, the system also provides insights on payment security issues for further operational improvements.


At the heart of Xendit’s technology is an API-driven payments infrastructure built on scalability, security and speed principles. Through this open API model, customer’s can connect to Xendit in a secure manner and integrate it into their business ecosystem without having to build their own infrastructure or experience lags in processing payments. In addition, this model provides quick and easy integration, allowing customers to go live quickly and provide their users with the optimal payment experience.

Xendit also puts a big emphasis on scalability. Since development processes constantly evolve, they have designed their platform with key features that allow businesses to keep up with change faster than ever before. This includes features such as adaptive routing, which helps businesses route customer payments based on transaction history; dynamic fee optimization; and advanced fraud detection capabilities. These features help businesses stay ahead of customer trends, allowing them to keep up with their expectations for fast and simple payment transactions.

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Payments infrastructure startup Xendit, the first Indonesian company to go through Y Combinator’s accelerator program, raises $64.6M Series B led by Accel (Mary Ann Azevedo/TechCrunch)

Xendit, the payments infrastructure startup and the first Indonesian company to go through Y Combinator’s accelerator program, recently raised $64.6M Series B led by Accel. This marks a major milestone for Xendit and further cements its standing in the payments industry.

Let’s take a closer look at the funding round and its details.

Series A

Series A funding for Xendit, a payments infrastructure startup based in Indonesia, was led by Goodwater Capital. The investment of $12 million would help the company expand its core offering of the world’s cheapest payments gateway. Xendit offers zero-fee transactions for credit and debit cards and connects more than 1,100 payment providers around the globe from Southeast Asia to Europe and Latin America.

The company was founded in 2016 by CEO and Co-founder Edi Wibowo who has expertise in payments technology and has grown exponentially since launching its payment gateway service. The Series A enabled Xendit to become one of the fastest growing fintechs in Southeast Asia ever since. They have also come to dominate the Indonesian payments landscape with their disruptive zero-fee architecture that changes how people make and accept payments online.

Series B

In October 2020, payments infrastructure startup Xendit announced that it closed a $64.6 million Series B funding round led by Accel, with participation from existing investors such as Finch Capital, Payment Ventures and Sequoia India. According to its Crunchbase profile, this brings the startup’s total funding to date to $98.6 million.

Xendit is the first Indonesian company to complete Y Combinator program’s accelerator and the venture capital firm Sequoia Capital was an early investor in the company. Xendit provides payment solutions for businesses and individuals in Southeast Asia such as electronic fund transfers (EFT), direct debit from bank accounts, invoicing software and Indonesia’s national payments system OVO Cash for secure domestic payments solutions.

Xendit will use the new funds to scale its operations across Southeast Asia, expand its services beyond Indonesia into neighboring countries, strengthen its development of proprietary technology and build out its team of software engineers and other staff members.


Xendit is a critical piece of Indonesia’s digital economy. The company has built a payments infrastructure that enables fast, secure, and reliable payments. This has made it easier for businesses to accept digital payments from customers in Indonesia and worldwide.

Xendit also helps businesses manage their finances with bank transfers, foreign exchange rates, and business analytics tools. With the recent $64.6M Series B investment led by Accel, Xendit is well-positioned to become Asia’s most comprehensive payments platform.

By leveraging its infrastructure and resources to provide users with a seamless payment experience, Xendit is continuing to revolutionize the way companies and consumers interact digitally in Indonesia and beyond.

tags = Payments infrastructure startup, Xendit, first Indonesian company, Y Combinator’s accelerator program, raises $64.6M, led by Accel, payments xendit combinator series azevedotechcrunch, COVID-19 pandemic