TikTok has been increasing its presence in the e-commerce industry in Malaysia as it enters into a strategic partnership with Atome. Through this effort, the company will be able to strengthen its online retail efforts in the said country.
TikTok Expanding Online Retails Efforts in Malaysia
Aiming to leverage its expertise in the fintech sector, Tiktok announced that it recently signed a partnership with Atome to expand its online retail efforts in Malaysia. According to a report from Bloomberg, this move is part of its broader strategy to establish itself in the online retail space to drive sales and revenue.
As part of this collaboration, the buy now, pay later (BNPL) service called Atome is now one of the a payment options on TikTok Shop. Atome serves as the BNPL division of the fintech company. This firm operates with support from prominent investors such as SoftBank Vision Fund 2 and Warburg Pincus.
Through this service, customers will have the flexibility to defer their payments for purchases made on the platform over a period of three to six months.TikTok Shop E-Commerce Lead of Strategy and Special Projects Jonathan Low stated that this collaboration is expected to drive growth, enabling merchants and small businesses to offer a convenient way to pay.
Benefiting from the Partnership
CNBC reported that this partnership represents a significant advancement for the Sinagpore-based company as its payments business has experienced substantial growth with tens of millions of users across Southeast Asia since its establishment in 2016. The startup's success is further highlighted by its fundraising achievements of over $700 million.
As for TikTok, this will expand its offering to e-commerce and will boost its visibility and sales potential. TikTok can solidify its position as a multifaceted platform that not only entertains but also facilitates commercial transactions, thereby diversifying its revenue streams.
Why Malaysia?
Lately, TikTok Shop has been making robust strides in the Southeast Asian e-commerce market, engaging in fierce competition with established players like Sea's Shopee and Alibaba's Lazada. Chief Executive Officer Shou Zi Chew has already expressed the company's commitment to invest "billions of dollars" in the Southeast Asian region over the coming years.
As of April, TikTok boasted an impressive user base of over 325 million monthly active users in Southeast Asia. This was followed by the company's plans to allocate $12.2 million to support more than 120,000 small and medium-sized businesses in their online efforts. This will be distributed in the form of cash grants, digital skills training, and advertising credits.
The collaboration comes at a time when the company is seeking growth opportunities beyond the U.S.
TikTok has encountered challenges in the country despite being the largest market, with Montana becoming the first state to ban the app. Moreover, the app's operations have also been banned in India. As a result, TikTok is now focusing on expanding into other markets to foster its continued growth.
Related Article : Is TikTok Shop Outpacing Shopee, Lazada in Southeast Asia?
