As the ASX bleeds across the board, Credit Intelligence Ltd [ASXCI1] stands out as one place of respite.
The microcap fintech player is up 14.29% at time of writing. Sitting in the green amidst so much red in today’s trading.
As for why, well, it is thanks to an update detailing the launch of Credit Intelligence’s buy now, pay later (BNPL) services in Hong Kong. A big milestone for this tiny company as it aims to carve out a niche for itself in this bustling sector.
Let’s take a closer look at what they had to say this morning…
Launched and ready to go
It’s official, Credit Intelligence’s BNPL platform has gone live in Hong Kong as of today. Utlising an online shopping portal — ekbuy.com.hk — to cater to customers across a wide range of goods.
As management notes, this site sells anything from home appliances and electronics to fresh food and premium produce. A one-stop shop for local consumers that comes with the option to utilise BNPL services.
For Credit Intelligence, this could be a huge advantage. Because by operating via their own shopping portal, they can also collect and make use of customer data. Tailoring their operations to the needs and demands of these customers.
Long term though, it will be fascinating to see how Hong Kong shoppers respond to BNPL. A type of service that has yet to really become popular in the tiny but important island.
Credit Intelligence’s Executive Chairman Jimmie Wong is certainly hoping to change that, commenting:
‘It is a big breakthrough for CI1 to capture the big potential consumer market in HK with our BNPL functions by online shopping or in store sales (our next phase in coming months). There is no sizeable BNPL player in HK now. With good funding support, CI1 can grow our HKBNPL revenue very big within the next 24 months. We will expand to other Asian markets at good times. This will enhance shareholder’s value in CI1.’
How to Limit Your Risks While Trading Volatile Stocks. Learn more.
What’s next for the CI1 Share Price?
Looking ahead, the immediate goal for Credit Intelligence will no doubt be evaluating the adoption of their BNPL services. Looking for ways to encourage and spread adoption of their platform.
As Wong’s comments note though, beyond that the next goal is clearly creating an in-store presence. And beyond that, expanding their platform to other regions across Asia.
So with that in mind, these clear objectives should give investors a lot of confidence about what to expect. Leaving it to management to actually deliver on said objectives. Something that we will find out in the coming months and years.
Granted, this it is still very very early days for this stock. An aspiring fintech play that has a lot of risk but also a lot of potential reward.
And if you’re looking for more fintech stocks like CI1 that trade for less than a dollar per share, then we’ve got a report you need to read. A comprehensive overview of three exciting fintech stocks that are worth a speculative punt.
Check out the full report, for free, right here.
Regards,
Ryan Clarkson-Ledward,
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here
