Significant improvements
In payment volume growth from 2022 to 2023
86%
Processing time for claims and incentive payouts
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Founded in 2018, Qoala is one of the largest omnichannel insurtech companies in Southeast Asia, with a comprehensive range of insurance product offerings that include car, motorcycle, health, life, smartphone, and even tropical diseases insurance. The company has a mission to democratize insurance and make it universally accessible and affordable for all.
Among Qoala’s innovations is its market-first same-day claims disbursements policy, which creates peace of mind for customers. Partners working with Qoala on insurance sales also benefit from same-day disbursements of incentives—a win-win model that allows Qoala to grow quickly, all while boosting cash flow for their partners.
However, there were several challenges that Qoala needed to overcome to achieve the breakthroughs it is now known for.
Challenges
Excessive upfront development time for direct integration with dozens of payment methods
To enable its customers to purchase insurance policies easily, Qoala needed to provide a convenient payment experience for its customers when it comes to paying for insurance premiums.
This meant providing a wide variety of payment methods, so customers can choose to pay with the payment methods they are most comfortable with.
However, doing this on its own–by integrating separately with dozens of banks and payment providers–would have taken too much upfront development time and costs. Therefore, Qoala needed to find a solution where those payment methods are already available for easy integration.
Long wait for claims is frustrating for insurance customers
One key concern customers have with the traditional insurance industry is the long wait for claims disbursements. Typically, a customer needs to wait for more than 7 days to receive their claims. As a company that wants to revolutionize the industry, claims processing time is a crucial area to improve on.
Manual management of transactions involving partners
Qoala works with various partners to boost the sales of its insurance policies. There are two types of money flows involving these partners, and these transactions needed to be enhanced as much as possible to make the process smooth for both end customers and partners:
- Insurance premium payments made by end customers through these partners—currently done manually
- Commission payouts made by Qoala to the partners for successful sales of insurance policies—a process that normally took 5-7 days
Tedious reconciliation process was taking up too much time
Working with many partner organizations, the financial data gets complicated, fast. Without the ability to separate payments into separate ledgers, Qoala’s Finance team had to spend too much time disentangling various transactions to attribute them correctly to different categories, such as partner commissions, marketing incentives, etc. In a lean and fast-growing startup like Qoala, this process takes up too much of the team’s precious time.
Solutions
Providing various payment methods through a single integration with Xendit
Partnering with Xendit since 2019, Qoala offers its customers the convenience of various digital payment methods via the Qoala app and website—hassle-free. Payment methods include QR payments, e-wallets, and virtual accounts from leading banks and providers in Indonesia.
In addition, Xendit’s API documentation was comprehensive and easy to use, making integration a breeze. During the few occasions where Qoala’s team encountered challenges, Xendit’s team has always been responsive, resolving issues quickly.
Same-day payouts of claims with Payout API
Using Xendit Payout API, Qoala’s team has streamlined and automated its disbursement process. This has led to fuss-free disbursements that are done almost instantaneously. Customers can now receive selected insurance product claims payments on the same day.
Payment management for partners
Since working with Xendit, there have been vast improvements in the transaction experience for partners:
- Payment of insurance premiums: Partners can use payment links to collect payments from end customers. These payments are automatically reflected in Qoala’s records, so partners don’t have to perform cumbersome administrative tasks to record the payments they collect.
- Payout of incentives: In the same way customers’ claims can now be disbursed close to real-time, Qoala partners can also withdraw their commission fees instantly on the Qoala Plus app.
Separating financial data into different ledgers with Platform Payments
With Xendit Platform Payments, Qoala’s team is able to separate funds into different buckets by creating sub-accounts for each business unit.
This helps the team gain clarity on the funds belonging to each category, such as commissions, marketing incentives, and more. Qoala’s team can also easily move funds among the different sub-accounts by using Xendit’s Transfer Balance API.
Results
Achieved success in democratizing insurance by providing seamless payment experience on Qoala Apps
The reliable and varied payment methods provided through Xendit help Qoala customers make payments more easily, improving the accessibility of insurance to the masses.
Furthermore, in line with its commitment to providing affordable insurance, Qoala was able to easily activate e-wallet payment channels, which are suitable for lower basket sizes.
86% decrease in waiting time for claims payouts—establishing a new industry norm
Because of the automated nature of Xendit Payout API, the waiting time for claims payouts has been reduced from about 7 days to almost real-time for selected insurance policy.
Not only did this lead to increased customer satisfaction, same-day disbursements also became a strong selling proposition for Qoala and helped redefine the norms in the industry.
Streamlined processes lead to happier and more productive partners
The ease with which partners can send payment links to collect insurance premium payments from customers allows partners to enjoy smoother and faster transactions. At the same time, the same-day incentive payout policy helps boost their cash flow. These indirectly lead to more satisfied partners who are motivated to achieve more sales through Qoala.
Monthly reconciliation becomes more efficient
Xendit’s dashboard helps to separate transactions into different ledgers, making reconciliation a breeze. It helps to get clear transaction records and real-time updates, making it much easier to track and verify payments. Due to this simplicity, the finance team has saved valuable time and resources, allowing them to focus on more strategic financial tasks and ensuring Qoala’s financial operations run smoothly.
| Without Xendit | With Xendit | |
| Accepting payments | Qoala’s team would have to integrate separately with each of the dozens of banks and payment providers it wants to work with—a tedious and time-consuming process |
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| Payouts |
| Instant claim payout on specific insurance products and partners |
| Reconciliation | Long hours spent disentangling various categories of transactions lead to long, tedious reconciliation process | The ability to separate transactions into different ledgers make reconciliation a breeze |
However, to make these improvements, there were technical challenges we needed to overcome first. Partnering with Xendit has allowed us to achieve them, thus allowing us to add more value to the lives of our customers.
