19th April 2023 - 3 min read
UOB and Lazada have signed a memorandum of understanding (MOU), which will enable them to roll out a range of retail products and banking solutions for their customers in several countries, including Malaysia. This will also see both parties refreshing the existing Citi-Lazada co-branded credit cards in Malaysia, Thailand, and Vietnam, following UOB’s acquisition of Citi’s consumer business in these markets (as well as Indonesia).
UOB confirmed that the MOU will allow it to reintroduce the Citi-Lazada co-branded cards as new UOB-Lazada co-branded cards, which are expected to be launched later this year with enhanced benefits. Among other things, it will include access to special Lazada deals during mega sale events.
At present, the Lazada Citi Platinum credit card in Malaysia lets you earn up to 10x Rewards Points on selected expenses. Specifically, you can earn 10x Rewards Points on all your Lazada and Lazada Wallet spend, 5x Rewards Points on selected online, lifestyle, telco, and insurance spend, and finally, 1x Rewards Points on any other expenses. There are also monthly bonuses, such as an additional 1,000 Rewards Points each month when you spend RM1,500 or more, and RM8 discount vouchers that you can collect on the 8th of every month via your Lazada app.
UOB further said that there are plans to also launch the new co-branded cards in Singapore and Indonesia as well, although no timeline is provided for this move.
Aside from that, UOB and Lazada’s regional strategic partnership also seeks to roll out cash management and transaction processing services, as well as loans to help Lazada sellers across the region. The loan offering, specifically, will likely be introduced in a pilot launch this year, and will provide merchants with access to streamlined onboarding, approval, and disbursement processes for loans and financing.
Additionally, UOB and Lazada noted that this partnership marks a significant first for both parties. For UOB, it is the bank’s first regional collaboration with an e-commerce platform. Meanwhile, for Lazada, this is the platform’s first partnership with a bank across a variety of payments and financial services in Southeast Asia (SEA), as opposed to only a single product.
Elaborating further on this, head of group wholesale banking and markets at UOB, Frederick Chin said that this partnership with Lazada complements the bank’s effort at bringing personalised and innovative solutions to its customers. “Through this partnership, consumers and businesses can benefit from seamless financial services that bring about access to rewarding experiences within ASEAN’s dynamic digital landscape,” he said.
Similarly, chief executive officer of Lazada, James Dong said that the e-commerce platform is committed to building an open and accessible ecosystem for SEA. “For consumers, we will offer easy-to-use, convenient and secure payment and financing options to enable their lifestyle needs. For brands and sellers, we are here to help them scale up their businesses and accelerate growth,” he commented.
(Source: The Edge Singapore)
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