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Citi has partnered with Southeast Asian ride-hailing company Grab to roll out a cobranded credit card, according to Reuters. The card will initially be launched in the Philippines, followed by Thailand later this year, before being rolled out in more Southeast Asian markets.
This isn’t the first time the two companies have worked together: They teamed up in 2016 to allow customers to pay for Grab rides using their points from Citi credit cards, and Citi invested in the firm in November 2018 through its venture capital arm Citi Ventures.
Here’s what it means: Citi’s and Grab’s expertise in finance and the Southeast Asian market, respectively, set the new credit card up for future success.
Southeast Asia (SEA) is a highly lucrative market for Citi to expand to with this new venture. The majority of SEA’s over 600 million consumers are un- or underbanked: 73% of consumers lack a bank account, according to KPMG, indicating that there’s a need for more accessible financial services. Additionally, Grab had already captured 65% of the ride-hailing market in Indonesia by August 2018, giving the credit card a large addressable market.
This move is part of Citi’s aim to increase its presence in Asia via partnerships.Citi has 16 million customers in Asia and aims to increase its user base by 2 million — or 13% — in the region in the next few years via partnerships alone, according to Gonzalo Luchetti, Citi’s head of consumer banking for Asia Pacific, Europe, the Middle East, and Africa. This isn’t the first time …read more
Source:: Business Insider