Leading digital 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 instalments on the Lazada platform through AsiaKredit’s eShopaLoan.
The goal of eShopaLoan is to enable the growing middle-class in the Philippines to shop and finance consumer goods purchases through instalment-based credit. Filipino consumers will now have the option of paying for purchases made via the Lazada online marketplace and LazMall in fixed monthly instalments at a competitive interest rate. Loans range from Php 4,000 (US$75) to as much as Php 20,000 (US$380) over a repayment period of six months. eShopaLoan finances products within the Php 5,000 (US$95) to Php 50,000 (US$955) price range.
Mr. Michael Singh, CEO and co-founder of AsiaKredit, said, “We are thrilled to partner with Lazada to offer consumers affordable, instalment-based credit that helps them meet their personal and families’ lifestyle needs. 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.”
“It is a privilege to collaborate with companies like AsiaKredit as we work towards a common goal in creating a secure and inclusive digital economy in the Philippines. Besides driving growth in the digital consumer finance landscape, Lazada Philippines is always looking for opportunities to pass on these benefits to our Filipino customers. With this partnership, Lazada customers can now have greater flexibility and a variety of payment options when they shop on the platform,” said Ray Alimurung, chief executive officer of Lazada Philippines.
AsiaKredit’s partnership with e-commerce retailers such as Lazada comes on the back of a surge in e-commerce transactions in the Philippines. E-commerce’s market penetration in the Philippines is currently among Southeast Asia’s lowest, and is projected to hit 34% average annual 10-year growth. A growing demand for consumption and credit, fuelled by the country’s growing middle-class, prompted AsiaKredit to launch its eShopaLoan product in Q2 of this year.
Mr. Singh states further that “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!”
eShopaLoan is driven by AsiaKredit’s proprietary algorithmic credit scoring tool that analyses smartphone behavioral data and other alternative data sources to determine an applicant’s creditworthiness. Via the pera247 app, applicants upload a selfie and valid ID, answer a short questionnaire, and grant access to their mobile data to determine their eligibility for a loan. The use of predictive smartphone behavioural data to determine creditworthiness eliminates the need for applicants to have an existing bank account, credit card or credit history.
To utilise the eShopaLoan option, Lazada customers can download the AsiaKredit pera247 app and complete the loan application. Approximately within 4 to 5 hours, customers will receive an approval and a disbursement will be sent to the assigned Lazada e-wallet. Approval timings will differ on a case- by- case basis and customers are required to place a 20% down payment of their selected purchase.