StanChart targets buy now, pay later services through fintech tie-up

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FILE PHOTO: People walk outside the main branch of Standard Chartered in Hong Kong, China August 1, 2017. Businesshala/Bobby Yip
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SINGAPORE (Businesshala) – Standard Chartered Plc on Wednesday announced a 10-year fintech partnership with Singapore-based Atom Financial to grab a piece of the fast-growing buy now, pay aftermarket market in Asia that has been hit hard by the pandemic. completed during

The global boom has given a boost to providers including Klarna, Affirm, Afterpay and Paypal, but there has been more scrutiny by relevant regulators that consumers don’t take on more loans than they can handle.

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Standard Chartered, the first major bank in Asia to unveil a significant move in the region, is making an undisclosed equity investment in Atom Financial, which operates the Atom platform in markets including Southeast Asia, and Indonesian digital lending platform Credit Pintar.

“This is one of Standard Chartered’s largest strategic investments to date in fintech and aims to expand its reach and scale within the mass market segment through a digital-first approach based on digital acquisitions and new partnership models. supports the ambitions of the

Unlike Western markets, where credit is easy to access, many consumers in developing countries, such as those in Southeast Asia, do not have much access to credit and lack bank accounts.

Standard Chartered said it will also provide Atom Financial with $500 million in funding to expand its merchant and client base.

The tie-up will initially begin in Southeast Asia, with Buy Now in Indonesia, Malaysia, Singapore and Vietnam over the next few months, with the latter rolling out to include paid services. It will then expand into digital loan products, the companies said in their statement.

Giving an update on the bank’s digital strategy, Bill Winters, CEO of Standard Chartered, said at an event in London, “This will allow us to aggressively scale credit products for small businesses and retail customers, including Buy Now, Buy Later.” Pay.”

Other markets for the fintech firm include China and Taiwan. Atom Financial is part of the Singapore-headquartered tech start-up Advance Intelligence Group.

Reporting by Anshuman Daga in Singapore and Nikhil Kurian Nainan in Bengaluru; Christian Schmollinger, Editing by Elaine Hardcastle

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