Plugging Indonesia’s credit card gap

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In focus

• Indonesia’s credit card to digital bank pipeline
• Coolmate’s unicorn goal gets closer with series C raise
• OpenAI’s hiring push in India

Hello reader,

I have a friend who doesn’t use a credit card because he’s afraid of being tempted to overspend and getting trapped in debt. He feels his cash flow is healthier without a credit card, paying for things only with a debit card or digital payments.

He’s not alone. Indonesia’s credit card penetration rate stands at only 7% – one of the lowest in Southeast Asia – despite the country’s banks offering credit cards since the 1980s.

However, several fintech firms remain bullish about the country’s credit card market.

In today’s Top Story, I take a closer look at Indonesian fintech companies focusing on credit card offerings – namely Yup and Honest. Yup, in particular, doesn’t see the low penetration rate as a problem.

The company offers a faster and easier credit card registration process compared to traditional banks. It aims to eventually become a digital bank, following the footsteps of Brazil’s Nubank, which started its business with credit card offerings.

Meanwhile, Coolmate’s new series C funding round brings us back to an old article that explored the company’s journey in transforming into a direct-to-consumer brand.

This piece from 2024 delves into Coolmate’s strategy of focusing on quality products that cost cheaper than premium branded items, as well as its goal of becoming a unicorn by 2030.

Jofie Yordan, journalist

Top Story

In Indonesia, digital bank-hopefuls try new credit-first playbook

Photo credit: Yup

There aren’t many fintech firms in Indonesia that offer credit card products. But for players like Yup, this presents an opportunity to become a digital bank without having to compete with others on high deposit interest rates.

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