SINGAPORE (Dec 9): Amid the growing purchasing power of millennial consumers in Singapore and the rising number of online shoppers, Citi and Lazada Group have jointly launched the Citi Lazada credit card.
The card, a partnership between the world’s largest credit card issuer and Southeast Asia’s leading e-commerce platform, is said to be targeted at millennial online shoppers who have exhibited growing purchasing power over the years.
In a press release on Monday, Citi and Lazada say they aim to serve over 50% of young professionals locally with the new card over the next few years.
According to data collated by Citi, half of the bank’s new credit card customers in Singapore are “digitally acquired”, with these customers spending close to three times more than others within three months of onboarding.
Both partners stand to gain through this joint credit card: Citi will gain access to a younger, digitally-savvy customer pool that constitutes the majority of e-commerce customers in the region, while Lazada will widen its breadth of offers and services by leveraging a global financial platform.
Brendan Carney, CEO of Citibank Singapore and Global Consumer Banking Asean Cluster head, notes that over 30% of Citi customers’ credit card spend is currently made via digital channels.
“It is important for us to continue expanding our presence and scale in digital ecosystems, and deepening our engagement with the growing e-commerce customer base in Singapore,” says Carney.
James Chang, CEO of Lazada Singapore, observes a 43% y-o-y increase in the number of customers aged 18-35 on Lazada’s Singapore platform, adding that millennials are now buying more groceries, household supplies and beauty products than ever before.
“As e-commerce in Southeast Asia continues to flourish and meet consumers’ expanding needs, Citi and Lazada are unified by a common goal to develop the e-commerce ecosystem and provide more value to digital natives,” says Chang.
Terming the credit card launch a “natural extension to Citi and Lazada’s regional partnership”, the partners target over 500,000 new credit cards in Southeast Asia over the next few years.
Singapore is the fourth market to be introduced to the Citi Lazada credit card, following launches in Malaysia, Thailand and Vietnam across October to December. The card is also slated to be progressively rolled out to other markets in 2020.
