Shopee and Visa sign five-year strategic partnership to unlock new
growth opportunities for Southeast Asia's digital economy
SINGAPORE, 1 October 2020 - Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, and Visa, the world's leader in digital payments, today 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: "Shopee continually strengthens our ecosystem to be an enabler for MSMEs to leverage technology to grow their business. We are looking forward to working closely with Visa to leverage their extensive and secure network to make it easier for sellers to digitalise, particularly those in tier-two cities and rural areas. 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: "When a small business goes digital, they're plugged into a much broader commerce landscape. Visa is working to help any business, regardless of their size or location, better attract and serve more local and global customers by getting enabled to accept digital payments in a safe and secure manner. This is especially important in the wake of the COVID-19 pandemic, as consumers and businesses increasingly adopt touchless payments and online shopping. 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 20181.
1 "Internet economy." https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.pdf. Accessed 29 Jul. 2020.
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% of the region's adult population being unbanked or underbanked2, adopting digital payments will enable them to participate in the digital economy.
As the market leader, Shopee will continue to leverage its key strengths to help buyers, sellers and brand partners make buying and selling online accessible for all. Shopee has experienced strong growth in Q1 2020. According to App Annie, in Southeast Asia and Taiwan, Shopee emerged as the top in the Shopping category by average monthly active users and downloads, and also the total time spent in-app on Android.
Shopee is the leading e-commerce platform in Southeast Asia and Taiwan. It was launched in 7 markets in 2015 to connect consumers, sellers, and businesses in the region.
Shopee offers an easy, secure, and engaging experience that is enjoyed by millions of people daily. It offers a wide product assortment, supported by integrated payments and logistics, as well as popular entertainment features tailored for each market. Shopee is also a key contributor to the region's digital economy with a firm commitment to helping brands and entrepreneurs succeed in e-commerce.
Shopee is a part of Sea Limited (NYSE:SE), a leading global consumer internet company. In addition to Shopee, Sea's other core businesses include its digital entertainment arm, Garena, and digital financial services arm, SeaMoney. Sea's mission is to better the lives of consumers and small businesses with technology.
About Visa Inc.
Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company's relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit www.visa.com.sg.
2 "Fulfilling Southeast Asia's Digital Financial Services Promise ...." 30 Oct. 2019, https://www.bain.com/insights/fulfilling-southeast-asias-digital-financial-services-promise/.Accessed 29 Jul. 2020.
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Sea Ltd. published this content on 01 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 October 2020 09:29:01 UTC