Consumer finance fintech AsiaKredit announced a strategic partnership that will enhance e-commerce payment options for Lazada Philippines customers.
Starting this September, Lazada shoppers can purchase products and apply for monthly payment installments on the Lazada platform through AsiaKredit’s eShopaLoan. The goal of the product is to enable the middle-class in the Philippines to shop and finance consumer goods purchases through installment-based credit.
«Our partnership with Lazada marks the beginning of many exciting and transformative retail partnerships we hope to embark on to improve access to finance for millions of underbanked Filipinos left out of the traditional financial system,» said Michael Singh, CEO of AsiaKredit.
Providing Credit Access for Middle-Class
Filipino consumers will now have the option of paying for purchases made via the Lazada online marketplace and LazMall in fixed monthly installments.
AsiaKredit's eShopaLoan finances products within the 5,000 pesos ($95) to 50,000 pesos ($955) price range. Loans range from 4,000 pesos ($75) to as much as 20,000 pesos ($380) over a repayment period of six months.
Rising E-commerce Transactions
E-commerce’s market penetration in the Philippines is currently among Southeast Asia’s lowest and is projected to hit 34 percent average annual 10-year growth. Ray Alimurung, CEO of Lazada Philippines noted that AsiaKredit’s partnership with e-commerce retailers comes on the back of a surge in e-commerce transactions in the country.
«The World Bank considers credit as 1 of 4 key enablers to drive financial inclusion. The Philippines remains 2-5x behind in unsecured consumer loans per capita compared to markets like Indonesia and Malaysia. This is a very positive development for our market,» added Singh.
