StanChart targets BNPL services through fintech tie-up

Standard Chartered Plc has issued a statement detailing a new 10-year fintech partnership with Singapore-headquartered Atome Financial. 

This partnership will see both firms cooperate to help StanChart secure its share of the fast-growing buy now, pay later market in Asia.

The worldwide growth of buy now pay later services has spurred the success of providers such as Affirm, Afterpay, Klarna, and Paypal. 

However, it has also become a source of concern to regulators who fear that these services may be encouraging customers to take on more debt than they can handle.

This move makes Standard Chartered the first major lender to initiate a defined move towards the BNPL sectorin Asia. The lender has said it will make an undisclosed amount in equity investment in Atome Financial. 

The fintech is the operator of Atome platform and currently has a presence in markets across Southeast Asia. The equity financing by StanChart also extends to Indonesian digital lending platform Kredit Pintar.

“This marks one of Standard Chartered’s largest strategic investments in a fintech to-date and supports its ambition to expand its reach and scale within the mass market segment via a digital-first approach, underpinned by digital acquisition and new partnership models,” a joint statement said.