Following the recent announcement of its plan to become a publicly traded company, Kredivo, Indonesia’s leading digital credit platform, announced its market entry into Vietnam through a Joint Venture with Phoenix Holding, a pioneering family investment office based out of Vietnam with a diversified portfolio in consumer, financial services, retail and technology sectors. The Vietnamese entity, Kredivo Vietnam Joint Stock Company, will be able to leverage Kredivo’s extensive PayLater expertise as well as Phoenix Holding’s broad local network and know-how.

Kredivo’s Chief Operating Officer, Valery Crottaz, said, “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.’’

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Nguyen Lan Trung Anh, CEO of Phoenix Holdings, said, “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.”

In Vietnam, Kredivo will partner with VietCredit Joint Stock Company, a leading finance company, to operate Kredivo’s PayLater business in Vietnam. Kredivo’s core products will be launched in stages, starting with bill payments for daily needs and personal loan, to be followed by e-commerce BNPL (Buy Now, Pay Later) in Q4, 2021.

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VietCredit’s Chief Executive Officer, Mr. Ho Minh Tam, said, “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.”

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% of the population owning a credit card. 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. This expansion signifies that Kredivo’s mission is getting closer to serving tens of millions of consumers with fast, affordable and easy-to-access financial services.

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