Kredivo Expands Operations to Bandung, Surabaya, Aims to Improve Financial Inclusion
Jakarta. Kredivo, a payment service which operates like a virtual credit card, expanded its operations to Bandung in West Java and Surabaya in East Java in a bid to broaden financial inclusion.
Kredivo is the flagship product of Singapore-based fintech company FinAccel, which provides a bridge between lenders and customers with the support of its multi-financing partner BFI Finance. The service is available on Google Play.
"The huge public excitement for online shopping, supported by Indonesia's rapid internet penetration, provides an opportunity for us to expand credit card solution in other cities. We've been planning this expansion for quite some time," FinAccel chief executive and co-founder Akshay Garg said in a statement sent to the Jakarta Globe on Thursday (14/10).
The company did not specify how many users it is going to target in their new locations.
Kredivo also added a 12-month installment plan to its service, after previously offering only one-month, three-month and six-month installments, with a 2.95 percent interest rate per month which is equal to the 35.4 percent annual effective rate — the maximum limit allowed by the central bank regulation on credit card interest in Indonesia.
Since it started its Indonesian operations in February, Kredivo has been offering its service only in the greater Jakarta area. The company now has a few thousand users and partners with 50 merchants, including Indonesia's oldest e-commerce site Bhinneka.com.
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