Home Credit Fintech Platform Launches Credit Card Products, Take Advantage of Visa Network

Multipurpose finance company Home Credit launches Home Credit Card, a physical credit card with the Visa logo that can be used for transactions online and offline. This service is provided for the company's loyal customers and has a good track record of payments.

Home Credit Indonesia Marketing & Strategy Director Moin Uddin said, digital innovation is an important thing that must be implemented by companies in order to improve the quality of service for customers.

"With the presence of this Home Credit Card, we want to improve the quality of our services by providing comfort, security, and convenience in the shopping experience," he said in an official statement, Thursday (30/7).

For this credit card application, it is confirmed that the customer has received a notification from the company system through the application or contacted directly by the team. The registration process only takes about three minutes for approval verification since completing the required documents.

Uddin ensures that the company remains committed and applies the precautionary principle in accordance with the applicable regulations from the regulator.

If it has been approved, the credit card needs to be activated first via call center or the My Home Credit application, then create a PIN. Because it utilizes the Visa network, Home Credit customers can use their credit limit to shop at merchant Visa both at home and abroad, and make cash withdrawals at ATMs bearing the Visa logo.

As for the interest, the maximum spending is 2,25% per month or a maximum of 26,95% per year. The company offers installment facilities through its product called Brilliant by Home Credit Card for up to 36 months. Customer transactions made with the card will be converted into installments based on special terms agreed upon by the cardholder's request.

As for the payment of this bill, the company has collaborated with third parties such as Alfamart, Indomaret, Pos Indonesia, BCA, BNI, Bank BRI, Bank Mandiri, Bank Permata, Bukalapak, GoBills, Tokopedia, and Ayopop. The breadth of this payment method is expected to make it easier for customers.

"In the past, credit cards could only be owned by some people, but now with various conveniences and application requirements, credit cards are easier to own and provide various benefits for their owners," he concluded.

It's easier to have a credit card

In the past, credit cards were premium items because they could only be owned by customers "privilege". This is reasonable because banks must be responsible for distributing loans sourced from public funds.

This condition finally makes growth stagnate from year to year. Data from Bank Indonesia revealed that as of February 17,61, there were 2,67 million cards, an increase of 2019% compared to February 17,15 of XNUMX million cards.

Of the transactions, it was only Rp. 25,86 trillion, a slight increase of 0,19% from the previous Rp. 25,81 trillion. Meanwhile, the transaction volume increased 3,51% to 26,44 million times from 26,44 million.

In response to this condition, a technology company that collaborated with banks to release credit card products was finally answered. Armed with data on customers who regularly pay and are diligent in making transactions, they offer credit cards so they can "grade up."

At least this strategy was successfully carried out by Traveloka with its brand Traveloka PayLater, which brought Bank BRI. Traveloka PayLater customers who are creditworthy will receive a notification to apply for a credit card.

Just like Home Credit, Traveloka PayLater Card using the Visa network so that customer credit limits can be used at all Visa merchants. Through the Traveloka application, customers can control all transactions, even to pay their bills.

Apart from Bank BRI, Bank Mandiri is also interested in co-brands credit card with Traveloka, without being affixed with the PayLater brand. The facilities offered are the opportunity to collect more loyalty points from transactions at Traveloka, daily discounts, and other offers from Bank Mandiri merchants.

Grab Actually, this strategy has also been carried out with Mastercard, it's just not yet available in Indonesia since it was first released at the end of last year.