Kredivo, Tokopedia to enable access to credit for underbanked ecommerce shoppers

The partnership will enable Tokopedia’s shoppers to pay with Kredivo at the checkout. Shoppers can now avail of Kredivo’s instant approval and 2-click checkout functionality, enabling them to buy without the hassles of applying for a credit card. This development is aimed at strengthening the financial inclusion for underbanked millennials and supports the growth of the ecommerce ecosystem in the country.

Ecommerce in Indonesia has been growing rapidly in the past few years, current estimates of market size of B2C ecommerce in Indonesia are around USD 5-6 billion. The market is expected to grow rapidly to USD 10 billion by 2020, according to estimates by eMarketer and Frost&Sullivan.

Despite the growth, Indonesia’s ecommerce ecosystem registers a poor penetration of credit cards and a high cart abandonment rate. Less than 3% of the population has access to credit cards, with a majority of buyers still relying on bank transfer and Cash on Delivery (CoD).