Latitude expands into Asia with major partner Harvey Norman and interest free instalments

Latitude Financial will partner with iconic retailer Harvey Norman in Singapore to spearhead the company’s pre-Christmas launch into the rapidly expanding $5.5 billion Southeast Asian Buy Now, Pay Later market^[1].

Latitude goes live with Harvey Norman in Singapore this week in the first major step in plans to rapidly expand its instalments business into key Asian markets.

Asia represents a significant opportunity for Latitude, with several of its existing merchant partners already strongly established in the region. In store and online payments in key Asian markets, excluding China, are expected to grow to more than seven times the size of the combined Australian and New Zealand markets by FY24^[2].

Latitude will differentiate itself in Asia by expanding into bigger ticket BNPL in 2022, allowing customers to pay for purchases of up to S$10,000 on interest free plans. Earlier this year it launched LatitudePay+ in Australia to extend BNPL purchases to A$10,000.

Latitude will initially rollout BNPL online and across Harvey Norman’s 12 stores in Singapore, starting with three stores in December. Latitude plans to expand into other Asian markets including Malaysia.

Latitude Managing Director and CEO Ahmed Fahour said: “We are excited to be entering the rapidly expanding and lucrative Asian payments and instalments market with our long-standing partner Harvey Norman.

“Singapore is a major Asian commercial hub and a logical entry market for Latitude, boasting a vibrant retail sector with sophisticated consumers who are quick to adapt to digital innovation.

“In Singapore and Malaysia alone we expect the BNPL market to grow to A$3.8 billion by 2025^[3], with a target market for bigger ticket instalment plans estimated to be up to 10 million people.”

Latitude has fast-tracked its expansion into Asia through the investment in and rebranding of the assets of Singapore-based BNPL provider Octifi.

Octifi has established itself quickly since its launch in Singapore last year, using a mobile-led, scalable consumer finance technology platform, backed by AI-driven data analytics and strong credit risk capability, to offer interest free instalment plans to customers spread over three payments.

Octifi volumes for 2021 have exceeded S$10 million, peaking at S$2.5 million in November, with 15,000 users and 320 merchants, including IDS, Gain City, Absolute Cycling, Natural Healing, Istudio, GW Mobile, EVISU Singapore, Dcpro Sports, Ogawa Health-Care and Mobot + CampBicycle.

Latitude has appointed Khamphanh Kittikhoun as CEO of its business in the region. Kittikhoun has worked for several prominent payment and financial services businesses in the Asia Pacific, including fintech Gojek.

The Octifi team has been retained in recognition of their expertise and market knowledge, ensuring there is no interruption to operations, reporting to Kittikhoun.

Latitude launched its BNPL product two years ago in Australia and has quickly grown to the third most recognisable brand in the country. It has 5500 merchant partners and more than 500,000 open BNPL accounts across Australia and New Zealand.

Media contact

Mark Gardy
Mark.Gardy@latitudefinancial.com
+61 412 376 817

[1] Source: ResearchAndMarkets.com
[2] Source: WorldPay/FIS Global Payments Report 2020. Countries include Singapore, Malaysia, Indonesia, Vietnam, Thailand, Philippines, Japan, South Korea, India
[3] Source: ResearchAndMarkets.com