E-commerce platform, Shopee and Visa has announced a five-year regional strategic partnership that will encourage greater participation in Southeast Asia’s digital economy, a key component of accelerating the region’s overall economic growth.
Shopee users will also benefit by being able to pay with an ease of mind using Visa and enjoy additional promotions and rewards. This partnership is part of Shopee’s mission to better the lives of individuals and businesses through technology, which increasingly includes digital payments.
As part of the regional agreement, Shopee and Visa will partner to:
● Incentivise MSMEs to digitalise their business on Shopee and adopt digital payments through Visa
● Provide MSMEs with marketing and campaign support to drive awareness, traffic and sales to online stores
● Launch co-branded credit cards in collaboration with local banks
● Offer fast, easy and secure Visa payments to all Shopee users
● Create unique experiences for Shopee users through Visa’s exclusive sponsorship platforms
Shopee will be able to provide shoppers and merchants with greater value, convenience and security through Visa, making it easier to do business and increase sales. Visa will tap on Shopee’s extensive user base to expand its presence with Southeast Asia MSMEs and online shoppers.
Terence Pang, Chief Operating Officer, Shopee, said, “Our shoppers will also benefit with a more convenient and rewarding experience that will encourage purchases and spur the growth of the economy. We’re committed to being in Southeast Asia for Southeast Asia to unlock the transformative power of technology.”
Neil Mumm, Head of Merchant Sales & Acquiring, Asia Pacific, Visa, said: “Visa is looking forward to working with Shopee to extend access to the digital economy for small businesses across Southeast Asia. Our expanded partnership with Shopee is one of the exciting ways Visa is supporting small businesses as they recover and look towards future growth.”
Over the next few months, Shopee and Visa will also launch co-branded credit cards across selected markets in partnership with local banks. It will offer shoppers integrated and seamless rewards and allow Visa to reach more local consumers. In Malaysia, the Maybank Shopee Credit Card was launched in June 2020 and was well received by Malaysians with overwhelming response in the first few days of launch.
The partnership will also see Shopee deepen its relationship with CyberSource, Visa’s full-service payment management platform, to support transaction processing and fraud detection and ensure a smooth and frictionless online shopping experience.
Southeast Asia is on track to becoming the fourth-largest economy by 2030, with an increasing percentage of GDP driven by the digital economy. The Southeast Asia internet economy is expected to reach $300 billion by 2025 with e-commerce being the biggest sector and driver of growth. The Southeast Asian e-commerce market is estimated to be worth $150 billion by 2025, up from $38 billion in 2018.
An increasingly tech-savvy population, rising middle class and the accelerated shift towards online services will further fuel the e-commerce industry. In 2015, 49 million people bought or sold items online, and by 2019, that number tripled to 150 million. With more than 70 percent of the region’s adult population being unbanked or underbanked , adopting digital payments will enable them to participate in the digital economy.