Credit Intelligence flags launch of personal BNPL consumer products platform in Hong Kong market
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Credit Intelligence believes the new consumer-focused BNPL platform will capture new opportunities and enhance shareholder value.
Innovative fintech company Credit Intelligence (ASX:CI1) has taken a major step toward developing a customer-focused buy-now-pay-later (BNPL) platform, following the recent launch of its business-focused platform, OneFlexi.
The company has entered into a letter of intent (LOI) with five independent strategic individual and corporate investors, in order to build out the platform aimed initially at the Hong Kong market.
The new BNPL platform will cover a wide range of consumer products including home appliances, electronic products, food and beverages, and premium imported fresh fruits.
According to CI1, this is a good opportunity to capture changes in behaviour in the consumer BNPL sector since the outbreak of COVID 19.
Other than generating revenue, the new platform will also help to build up a larger customer database and increase the company’s overall gross merchandise value.
“This is the right time to capture the personal BNPL market in Hong Kong,” commented Credit Intelligence CEO, Jimmie Wong.
“Under the pandemic this model will definitely enhance shareholders’ value in CI1.”
Under the terms of the LOI, CI1 will provide funding for the initial stages of platform development.
This investment is subject to further discussions and shareholder approval, but the company expects to take no less than a 74% equity stake when the transaction is completed.
Other corporate investors that will take minority stakes in the project include QBS Retail Technologies, SME Hero, and Crazy Group.
QBS is one of the leading IT service providers in the Asia Pacific Region with over two decades of experience in designing and implementing solutions for multinationals.
SME Hero is a provider of SME financing solutions in Hong Kong, while Crazy Group is a digital marketing company with a global network.
The new platform will offer customers branded consumer products from global suppliers, as well as flexible and interest-free BNPL services.
CI1 says the platform could also create cost efficiency for the company by synchronising its tech backend support and downstream operation with the existing SME BNPL platform, OneFlexi.
The OneFlexi platform currently provides BNPL services along with SME loan services to over 20,000 clients in Hong Kong.
The company had said that OneFlexi would be further developed for the Australian market and other jurisdictions in the future.
Meanwhile, the new consumer BNPL platform is currently in the process of applying for an intellectual property registration, with progress to be updated in due course.
This article was developed in collaboration with Credit Intelligence, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.