Indonesia telco Telkomsel announced today that it has invested an undisclosed amount into fitech startup FinAccel (Kredivo), through its venture arm Telkomsel Mitra Inovasi (TMI), along with MDI Ventures.

Kredivo is a digital payment startup that provides different options of payment methods and terms to help customers break large payments into monthly, affordable, and safer payments.

The fintech company claims that it uses data science in credit-scoring algorithms, combined with more traditional measures such as credit history and income, to determine creditworthiness, unlocking access to credit to a whole new set of consumers.

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Kredivo has also been supporting payment transaction for big players in e-commerce, such as Tokopedia, BukaLapak, Shopee, and digital cashier system Moka to build and offer a more online payment method for their customers.

“Our objective is not only to provide a more flexible and feasible payment solution for the young professionals but also to advance thousands of Indonesian retailers by providing alternative financial service that allows them to reach wider customer segment,” said CEO of TMI Andi Kristianto.

“Telkomsel’s investment into FinAccel (Kredivo) is a clear-cut win in the fact that both parties can go-to-market together, tapping into Telkomsel’s consumer network and providing them with value-added services,” said CEO of MDI Ventures Nicko Widjaja.

According tio Kredivo, as of now only less than 10 per cent of applicants apply successfully for credit products using traditional methods. Kredivo’s mission is to broaden access to capital, which it believes can help build up Southeast Asia’s already growing economies.

Image credit: Kredivo