A fintech start-up, Kredivo will target the daily payment market in several Southeast Asian countries, one of which is Vietnam.
Kredivo’s VP of Marketing and Communications Indina Andamari said that apart from in Indonesia, Kredivo has been legally working in Vietnam since August 2021. In establishing a business in Vietnam, Kredivo partnered with Phoenix Holdings, a family investment company based in Vietnam with a diversified portfolio in the fields of customer, financial services. , retail, and technology.
“Phoenix’s experience and growing network there will certainly help us to grow quickly in Vietnam,” he said, Saturday (19/2/2022).
Meanwhile, Indina explained that in order to run a paylater business in Vietnam, Kredivo partnered with VietCredit Merge Stok Company, a funding company.
He added that Kredivo’s core products will be released in stages, starting with the fulfillment and payment of bills for daily needs and individual loans, followed by a paylater feature in e-commerce that has been issued in the fourth quarter of 2021.
In the Southeast Asian market, Kredivo aims for countries with the same character as Indonesia, one of which is a country with a high level of credit access inequality in the midst of accelerating digital adoption.
Indina explained that the country that fits the criteria is Vietnam. Kredivo’s internal data shows Vietnam as one of the countries with the lowest credit card penetration in Southeast Asia besides Indonesia and the Philippines, with 4.1% of the community having credit cards.
In addition, credit inequality and lack of knowledge about digital payments are a particular obstacle in the country and cause most business transactions to be carried out in cash. This development indicates that Kredivo’s vision is getting closer to serving tens of millions of customers with financial services that are fast, accessible, and easily accessible.
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“We hope that with Kredivo’s presence in the Southeast Asian market, it can facilitate access to credit and financial services for those who need it. Furthermore, we believe that paylater will be one of the catalysts for the economic progress of a country,” he said.
Although it has been developed overseas, Indina explained that the company is currently concentrating on improving paylater services in Indonesia. This is supported by the large number of underserved citizens and the large credit penetration gap.
Kredivo currently has nearly five million active users in Indonesia which has almost doubled in the last 10 months, with an average of 25 business users using Kredivo annually.
In Indonesia, Indina explained that the company will improve service in several level 3 cities, expand customer targets to productive fields, such as MSMEs, to penetrative to off-line realms, such as the collaboration that Kredivo has carried out with PT Partner Adiperkasa Tbk. and the launch of the Flexi Card.
Kredivo has also implemented an integrative paylater feature with wallet sharing of at least 50% at e-commerce merchants in Indonesia. Meanwhile, for the Southeast Asian market, especially in Indonesia, Vietnam, Thailand and the Philippines, the development strength of the paylater industry is predicted to reach US$25 billion.