Kredivo Expands Its Service To Vietnam

JAKARTA - It is reported that Kredivo has spread its wings in Vietnam, through a joint venture with Phoenix Holding, a family investment company. This step was taken by Kredivo after announcing plans to become a public company some time ago.

The Vietnamese entity, Kredivo Vietnam Joint Stock Company, plans to operate PayLater as well as Phoenix Holding's extensive network and local knowledge.

“The launch of Kredivo in Vietnam as the first market share outside Indonesia is an achievement this year. Vietnam is a logical choice given the country's low credit card penetration and fast-growing middle class, fast-growing e-commerce market, and similar demographic and consumption patterns with Indonesia," said Kredivo Chief Operating Officer, Valery Crottaz in a statement received by VOI, Friday, August 26.

Meanwhile, Phoenix Holdings CEO, Nguyen Lan Trung Anh, said that with the mobile and digital native golden generation in Vietnam, the two companies will meet consumer needs with PayLater, where current credit services have too big a bottleneck.

"As in other markets, we believe PayLater will unlock and catalyze another important growth stage of the Vietnamese economy," said Trung Anh.

Later, Kredivo will cooperate with VietCredit Joint Stock Company, a finance company, to operate Kredivo's PayLater business in Vietnam.

Several services will be launched in stages, starting with bill payments for daily needs and personal loans, followed by the PayLater feature in e-commerce in the fourth quarter of 2021.

Recent data shows that Vietnam is one of the countries with the lowest credit card penetration in Southeast Asia besides Indonesia and the Philippines, with only 4.1 percent of users from the population who have credit cards.

In addition, the credit gap and lack of knowledge about digital payments is a challenge in the country and has resulted in the majority of transactions being carried out in cash.