Bank Mandiri and Shopee launched a co-brand credit card, the Mandiri Kartu Kredit Shopee, by leveraging the global Visa network. This is said to be the first collaboration in Indonesia, offering the convenience of non-cash transactions on the marketplace platform using a credit card.
On a general note, Indonesia’s credit card penetration is classified as minimal. Based on Bank Indonesia’s data, the number of commercial bank credit cards as of the end of December 2020 was at 16.94 million, down 3.14% YoY from the previous year at 17.49 million. The credit card transactions volume was at 274.68 million, down 21.34% on an annual basis.
Shopee’s presence in Indonesia as a marketplace platform with the highest average visits of up to 90 million times over the past year, according to the iPrice report, is an opportunity to drive credit card penetration.
Bank Mandiri’s Network & Retail Banking Director, Aquarius Rudianto said that this collaboration was very strategic as Shopee was also one of the main players in the e-commerce industry, therefore, the platform had a very large user base.
“With the various transaction convenience offered by Mandiri Credit Card combined with security features and the benefits of Shopee-style shopping, we expect the credit card-holders will get more often to shopping,” he said in a virtual press conference, Wednesday (17/3).
Shopee Indonesia’s Executive Director, Handhika Jahja added, as a technology-based company, Shopee is committed to meeting the needs of every user through a series of initiatives and innovations, one of which is by collaborating with well-known partners to expand the product.
“We expect that the collaboration between Shopee and Mandiri can be the first series of collaborations that bring benefits, especially in providing convenience, more benefits, and the best online shopping experience for users,” Jahja said.
Through this co-brand credit card, the two companies have prepared various offers, such as promos or discounts, cashback, free administration fees for both full payment transactions or special installments at Shopee, which can facilitate people to shop but stay financially smart.
Supported by Visa cardholders can shop at more than 70 million Visa merchants worldwide, in more than 200 countries, using more than 160 currencies. The card has also equipped with contactless technology, where cardholders simply tap the card at the payment terminal and enter a PIN for transactions up to Rp1 million.
In order to apply for this co-brand credit card, Shopee users can apply directly through the Shopee application. Next, they will be contacted by Bank Mandiri for the verification process.
Currently, Bank Mandiri has issued more than 1.8 million credit cards. Apart from Shopee, Bank Mandiri has also collaborated with Traveloka in a similar mechanism.
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Original article is in Indonesian, translated by Kristin Siagian
