JAKARTA. Domestic e-commerce market is more vibrant with the presence of financial technology (fintech) company. The company provides a service of goods purchasing by credit without using credit card.
PT FinAccel Teknologi Indonesia (FinAccel) through its product Kredivo has just recently offered credit facility for e-commerce trading. Kredivo does not directly allocate the credit to costumer, but through a financial institution BFI Finance. Similar with credit card function, Kredivo connects costumer who needs funding with BFI Finance with simple procedures.
After applying, the costumer will receive a Kredivo account, which allows the customer to shop at 45 merchants that become Kredivo partner. “Under the payment scheme, BFI Finance will disburse funds to Kredivo, and Kredivo subsequently will transfer the funds via bank to certain merchant that is targeted by the customer. Subsequently, the customer will pay to BFI in installment”, said CEO&Co-Founder of PT FinAccel Teknologi Indonesia Akhsay Gard on Thursday (16/9).
According to Akshay, Kredivo applies simpler transaction procedure than credit card. In addition to the simple procedure, some people are still doubt about security in doing transaction via credit card.
As an information, Kredivo offers credit ceiling in the range of IDR 1.5 million to IDR 3 million with 20% of down payment. Kredivo also sets 2.95% of interest rate.
Akhsay predicted that total e-commerce transaction in South East Asia in the next five years will increase to US$ 50 billion. Akshay expected that US$1 billion-US$2 billion of the total transaction come from Kredivo customers.
Despite the convenience offered, bankers do not perceive Kredivo as a competitor for credit card. Director of Bank Central Asia (BCA) Santoso said that bank has different approach in providing credit facilities. “BCA targets 8%-10% increase in number of transactions through credit card” Santoso added. (Translator: Muhammad Farid)