Kredivo Target to Master Up to $2 Billion in E-commerce Transactions in ASEAN

Virtual credit card platform Kredivo targeting the next five years (2021) to be able to control transactions E-commerce between up to $2 billion in the ASEAN region. The target is made with the assumption of total transactions E-commerce ASEAN in that year reached $50 billion.

Akshay Garg as CEO Kredivo explained that to achieve this target, his party will expand to several countries in the ASEAN region. The expansion will be encouraged starting from next year. There are several countries that are considered for a stopover, such as Malaysia, the Philippines and Thailand. However, his party is still studying the market to find the ideal target.

"The expansion plan to the next country is still under study, maybe in the first quarter of 2017 we will announce it," he said, Thursday (15/9).

Garg admitted, this target was made based on the results of research conducted Kredivo. The main credit card market around the world is still dominated by MasterCard. It takes time to develop and dominate the market. Therefore Kredivo want to focus more on making products that reflect the development of MasterCard, so that they are easier to adopt.

He continued, later when the expansion can be realized, his party will use brand Kredivo to be brought abroad. Besides that Kredivo will also open up opportunities to work together and cooperate with businesses from a financial institution from that country which will act as Actioncalendar.

"We open up opportunities for all financial institutions from these countries to become business partners. We are still looking at the regulations and the contours of the market."

As known, Kredivo cooperates with PT BFI Finance Indonesia Tbk as a party Actioncalendar sole for the distribution of financing. Grag revealed that his party chose BFI because of the similarity in vision and mission. On the one hand, BFI needs new market share in the midst of sluggish financing for the automotive sector.

Business Development in Indonesia

Kredivo has only launched its services in Indonesia since November 2015. Grag admitted that since the last six months, the average business has grown more than 50% per month, both in terms of users and transactions. Now Kredivo already working with 45 E-commerce to process transactions in it.

Some E-commerce These include Bhinneka, Global Teleshop, Wellcomm Shop, Jualo, Sepulsa, Lensza, AsmaraKu, and others. His party targets that by the end of this year the number of collaborations can increase to 100 e-commerce, while next year the number could double to 300 E-commerce.

"Merchant E-commerce in Indonesia continues to grow every week. We are targeting next year the number of merchant can touch the number 300 E-commerce."

According to him by cooperating with many E-commerce Kredivo can directly act as a sales stimulus for online businesses and make online transactions more affordable and safe for consumers. Because growth E-commerce in Indonesia is extraordinary, but not yet accompanied by a mature payment ecosystem.

This is reflected in the low level of credit card penetration in Indonesia, which is the lowest in Southeast Asia. According to a report by the Indonesian Credit Card Association, in July 2016 the number of credit cards in circulation was only 17 million with an average of two credit cards per person. This shows the number of credit card owners in Indonesia is around 8 million people.

"In the future we want to collaborate with more players E-commerce and expand credit card inclusion in Indonesia through technology," he concluded.