TikTok inks deal with Singapore-based Atome to grow its online sales in Malaysia
KUALA LUMPUR, July 22 — TikTok’s e-commerce arm has signed a partnership with financial tech firm Atome, which is part of the Singapore-based Advance Intelligence Group, in a bid to expand its online retail presence in Malaysia.
Atome head of commerce William Yang said the e-commerce platform will offer its “buy now, pay later” (BNPL) service as a payment option on the TikTok Shop in Malaysia, Bloomberg reported.
“By integrating Atome as a payment option on TikTok Shop, we’re excited to help drive e-commerce growth and support brands of all sizes, but especially SMEs and young entrepreneurs,” he was quoted as saying.
Yang said the BNPL service lets buyers defer their payments over a period of three to six months.
Bloomberg called the deal a boost for Advance Intelligence, whose payments business has gained tens of millions of users in South-east Asia since its founding in 2016.
According to the business news wire, the Singaporean start-up has raised over US$700 million in total, including a round in 2021 that valued it at more than US$two billion.
In 2021, Standard Chartered Bank announced that it will invest in Atome as part of a 10-year partnership.
The report also stated that TikTok is planning to invest billions of dollars in South-east Asia over the next three to five years as it believes the region can boost its growth and challenge the two giants Shopee and Lazada, owned by another Singapore-founded group Sea Ltd and and China’s Alibaba Group Holding Ltd respectively.
Shopee and Lazada are also Malaysia’s two biggest e-commerce platforms and offer BNPL options.
Malaysia’s e-commerce gross merchandise value is projected to reach US$18 billion by 2025, up from US$14 billion in 2022, Bloomberg reported, citing Statista figures.
