Indonesian BNPL player Kredivo has ventured into Vietnam via a joint venture with family investment office Phoenix Holding.
Trading as Kredivo Vietnam Joint Stock Company, the new entity will combine Kredivo’s PayLater expertise and Phoenix Holding’s local network.
Kredivo will collaborate with finance firm VietCredit Joint Stock Company to run its PayLater business in Vietnam.
It will have a phased roll-out of its core offerings, initially providing bill payments for daily needs and personal loan.
This will be followed by e-commerce BNPL in the fourth quarter of 2021.
Phoenix Holdings CEO Nguyen Lan Trung Anh said: “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 catalyse another important growth stage of the Vietnam economy.”
Kredivo COO Valery Crottaz called the Vietnam launch a ‘key achievement’.
Vietnam is Kredivo’s first market outside of Indonesia.
“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,’’ Crottaz noted.
Kredivo offers customers instant credit financing for ecommerce and offline purchases, as well as personal loans, based on real-time decisioning.
The latest move comes soon after the BNPL firm unveiled plans to go public through a merger with a special purpose acquisition company, valuing the combined entity at nearly $2.5bn.
FinAccel, the parent of Kredivo, will merge with VPC Impact Acquisition Holdings II, which is backed by Victory Park Capital.