Indonesia’s Buy Now Pay Later (BNPL) startup giant Krevido recently announced its foray into the Vietnamese market, thereby making its debut in the international sector, according to media reports. The company has entered into a joint venture with Phoenix Holdings, a Vietnam-based pioneering family investment office which boasts a diversified portfolio in sectors like consumer, financial services, retail, and technology. Named Kredivo Vietnam JSC, it is expected to leverage Kredivo’s extensive BNPL feature and also enjoy Phoenix Holding’s broad local network.
Valery Crottaz, Kredivo’s COO told the media, “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, a rapidly growing middle class, the fast-growing e-commerce market, and similarities in the demographic and consumption patterns to Indonesia.”
Kredivo will partner with VietCredit JSC, a leading finance company which will operate the BNPL business in Vietnam and Kredivo’s core product will be launched in stages like bill payment and personal loans, followed by e-commerce BNPL in the fourth quarter of 2021.
Vietnam has a very low credit card penetration with only 4.1 percent which makes it clear that Kredivo will make a substantial impact. The lack of knowledge and credit gap among the population will serve as the primary challenge and even now, the majority of transactions are being carried out in cash. This expansion also brings Kredivo closer to its goals of serving millions of consumers with fast, affordable, and easy-to-access financial services.