Kredivo has today revealed its market entry into Vietnam through a Joint Venture with family investment office Phoenix Holding.
The Indonesian fintech will partner with VietCredit Joint Stock Company, to operate Kredivo’s PayLater business in Vietnam and Kredivo’s core products will be launched in stages. Starting with consumer payments and personal loans, e-commerce BNPL is scheduled to go live in Q4 2021.
With low credit card penetration in Vietnam and only 4.1% of the population owning one, it is apparent that Kredivo will make a substantial impact. The credit gap and lack of knowledge about digital payments is also challenge and has resulted in the majority of transactions being carried out in cash.
This news comes after Kredivo announced it was going public in a $2.5 billion merger with a special purpose acquisition company, sponsored by Victory Park Capital.
Valery Crottaz, chief operating officer at Kredivo, says, “the launch of Kredivo in Vietnam, our first market outside of Indonesia, is another key achievement and milestone for the business this year. Vietnam came as a logical choice given the low penetration of credit cards in the country and a rapidly growing middle class; the fast-growing e-commerce market; and the similarities in the demographic and consumption patterns to Indonesia.’’
Nguyen Lan Trung Anh, CEO of Phoenix Holdings, adds: “Kredivo and Phoenix share a mutual vision of financial inclusion and access. Together we want to make credit and financial services more easily available to those who qualify for and need it. In Vietnam, with a golden generation that is upwardly mobile and digital native, our services like Buy Now Pay Later will cater to a consumer needs where other credit services come with unreasonably high barriers. As in other markets, we believe BNPL will unlock and catalyze another important growth stage of the Vietnam economy.”
Mr. Ho Minh Tam, CEO of VietCredit says: “We’re incredibly excited about applying Kredivo Digital Lending platform to VietCredit’s new products. We believe that collaborating with Kredivo, in a spirit of open innovation, is a powerful driver of digital transformation and can offer better products and services to customers, and thus improve customer experience as well as gaining a competitive edge.”