Credit Intelligence (ASX:CI1) to develop BNPL product for Hong Kong consumers

Highlights

  • Credit Intelligence has announced its plan to build another BNPL product for Hong Kong consumers.
  • CI1 signed letter of intent on with five investors to develop the consumer products.
  • This platform will focus on the local market in Hong Kong, covering a wide range of consumer products.

ASX-listed financial technology Company Credit Intelligence Limited (ASX:CI1) unveiled its plan to build another BNPL product for Hong Kong consumers. The fintech Company already runs a similar SME BNPL platform – [email protected] OneFlexi.

CI1 today said that it entered into a letter of intent on Monday (LOI) with five investors to develop the consumer products BNPL platform in Hong Kong. This platform will initially focus on the local market in Hong Kong, covering a wide range of consumer products including home appliances, electronic products, wine, food and beverages, premium imported fresh fruits, to capture the opportunity in change of consumer behavior in the personal BNPL sector since the outbreak of COVID 19.

The five investors which are party to LOI include - IT service provider QBS Retail Technologies, SME Hero Holdings Limited, a Hong Kong based SME business, and Crazy Group Limited which is a Hong Kong based digital marketing and product distribution service provider.

What role will this platform play?

  • This platform will initially focus on the local market in Hong Kong, covering a wide range of consumer products including home appliances, electronic products, wine, food and beverages, premium imported fresh fruits, to capture the opportunity in change of consumer behavior in the personal BNPL sector since the outbreak of COVID 19.
  • Other than trading profit and BNPL service fee, the platform will also enhance the Company’s overall value, including, building a larger customer data base and improving the Gross Merchandise Value.

The announcement revealed that post completion of the transaction, CI1 will be the major shareholder in this platform with not less than 74% equity interest.

Bottom Line

With an increase in e-commerce business more and more people are resorting to digital payments and thus BNPL is selling hot across major economies. More and more companies are entering into the BNPL business with an aim to make profit. CI1 has thus acted wisely to capture personal BNPL market in Hong Kong. Under the current circumstances, it is believed that this model will definitely enhance shareholders’ value in CI1.

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