{"id":2400,"date":"2021-10-07T16:30:23","date_gmt":"2021-10-07T09:30:23","guid":{"rendered":"https:\/\/bitesizebkk.co\/?p=2400"},"modified":"2021-10-07T10:20:05","modified_gmt":"2021-10-07T03:20:05","slug":"brand-spotlight-atome","status":"publish","type":"post","link":"https:\/\/bitesizebkk.co\/brand-spotlight-atome\/","title":{"rendered":"Brand Spotlight: Atome"},"content":{"rendered":"

Buy Now, Pay Later (BNPL) is having a series of golden moments. Acquisitions of BNPL platforms have only increased this year, from payments company Square\u2019s <\/span>US$29 billion acquisition<\/span><\/a> of AfterPay, to Amazon\u2019s partnership with Affirm, to <\/span>PayPal\u2019s US$2.7 billion buyout <\/span><\/a>of Japanese BNPL platform Paidy.\u00a0<\/span><\/p>\n

The wheel doesn\u2019t stop spinning, and the list goes on.\u00a0<\/span><\/p>\n

Buy Now, Pay Later has been around for years, but saw a refreshed boom during the pandemic when people stayed home and relied on online shopping. <\/span>BNPL services are growing at a rate of 39% a year<\/span>, with its market share set to double by 2023. By then, <\/span>3%<\/span><\/a> of global ecommerce spend will be through BNPL services.<\/span><\/p>\n

In Southeast Asia, the BNPL race is also heating up with more players coming into the landscape. We sat down with <\/span>Poompong \u201cNan\u201d Tancharoenpol<\/span><\/a>, General Manager of <\/span>Atome<\/span><\/a> Thailand to discuss the business model, the landscape and how it feels to be one of the first entrants into the market.\u00a0<\/span><\/p>\n

\"\"
Atome Thailand General Manager, Poompong Tancharoenphol<\/a><\/figcaption><\/figure>\n

BNPL 101<\/h2>\n

Atome is a leading Buy Now, Pay later platform in Southeast Asia, having launched in Singapore back in 2019. The company\u2019s name is pronounced \u201cA to Me\u201d, which is essentially short for <\/span>\u201c<\/span><\/i>A<\/i><\/b>vailable-<\/span><\/i>To<\/i><\/b>–<\/span><\/i>Me<\/i><\/b>\u201d<\/span><\/i><\/p>\n

So, we wasted no time diving in.\u00a0<\/span><\/p>\n

\u201cBuy Now Pay Later is exactly how it sounds,\u201d says Nan. \u201cA platform like Atome allows users to simply pay for their item in interest free deferred payments, whether it be a cosmetics product or a pair of sneakers.\u201d\u00a0<\/span><\/p><\/blockquote>\n

The value of Atome lies in the flexibility that it provides users, who can sign up with ease with just a few taps on their phone.\u00a0<\/span><\/p>\n

\u201cLike a lot of digital trends, BNPL became very popular during the pandemic, when people relied on ecommerce and likely did not want to overspend every month,\u201d says Nan.<\/span><\/p>\n

The value of BNPL is that it provides flexibility on payments you know you can afford. Nan calls it <\/span>aspirational purchases.<\/span><\/i><\/p>\n

\u201cThis is the key differentiator between us and credit cards. We allow you to break down smaller purchases over the span of months, instead of having to spend all in one go.\u201d<\/span><\/p>\n

Smaller ticket items refers to everyday luxuries and nice to have products such as cosmetics, skincare, apparel and footwear. These are likely things you know you\u2019ll be able to afford next month, when your salary comes in.\u00a0<\/span><\/p>\n

\u201cBNPL is not for items such as expensive smart TVs or electrical appliances,\u201d says Nan. \u201cIt\u2019s for things you can probably afford today, but we add that flexibility to your monthly cash flow.\u201d\u00a0<\/span><\/p>\n

Atome is tackling the THB2,000-3,000 price ticket, as opposed to bigger ones.\u00a0<\/span><\/p>\n

\"\"
The Atome app<\/figcaption><\/figure>\n

So, how does it work?<\/h2>\n

The sign up process is very straightforward. After downloading the application and filling out the necessary details, you\u2019re more than good to go. So, when users want to use the service, it\u2019s only a three step process.\u00a0<\/span><\/p>\n

Atome is omnichannel, which means you can use it as an online checkout feature or at a physical check out counter in store too.\u00a0<\/span><\/p>\n

If you\u2019re shopping online, simply select Atome as a payment method and it will automatically split your bill into 3 equal payments-with no hidden fees. The first payment will be done instantly, and the remaining two will be 30 days apart.\u00a0<\/span><\/p>\n

For offline retail, customers can just scan the QR code on site and go from there.<\/span><\/p>\n

What about after? What happens if a user misses a payment? Hint, it\u2019s not as bad as a credit card\u2019s penalty scheme.<\/span><\/p>\n

\u201cIf a user misses a payment, we\u2019ll send an alert and halt you from further spending on the app,\u201d says Nan. \u201cA customer’s account remains suspended until the missed payment is paid, together with the 0.3-0.5% admin fee.<\/span><\/p><\/blockquote>\n

This is one of the main ways we prevent customers from overspending, and another big difference vs credit cards, where the interest charges can snowball even as you keep using the card..\u201d<\/span><\/p>\n

Atome relies on its eKYC technology and Singapore based Advanced Intelligence Group\u2019s AI technology to approve users, and conduct credit scoring models.\u00a0<\/span><\/p>\n

Thailand\u2019s Atome journey<\/h2>\n
\"\"
Poompong Tancharoenphol with VP-of Business Development, Chanunpak Kaewchambang<\/figcaption><\/figure>\n

Prior to taking on the role of General Manager at Atome Thailand, Nan was the Country Head at B2B ecommerce platform Zilingo Thailand and before that, an investment manager at AddVentures, Siam Cement Group\u2019s venture capital unit.\u00a0<\/span><\/p>\n

\u201cWhen I was working at AddVentures, of course I was exposed to the emerging technologies and trends, ecommerce was always a dominant one,\u201d says Nan. \u201cThen, it became about the enablers of the ecommerce industry, from logistics to supply chain. Thailand is well positioned in ecommerce and logistics, but there weren’t a lot of players tackling payments.\u201d\u00a0<\/span><\/p>\n

Then came Atome, and Nan saw the opportunity to dive right in.\u00a0<\/span><\/p>\n

\u201cDiving into BNPL in Thailand now is probably like how it felt to start ecommerce back in 2013,\u201d he says.\u00a0<\/span><\/p>\n

Atome is eyeing the entire landscape, and has onboarded a handful of regional and local brands already, less than a month after launching in Thailand.\u00a0<\/span><\/p>\n

\u201cWhat I\u2019m really excited about is that aside from onboarding our regional brands such as Sephora and Zara, local Thai brands have also been very receptive and we have signed on GQ apparel, Skin Lab and Thai designers such as Asava and Vickteerut,\u201d says Nan.\u00a0\u00a0<\/span><\/p><\/blockquote>\n

The company also has plans to offer BNPL options through their partnership with Agoda, which will allow holidayers to spread out their hotel payments.\u00a0<\/span><\/p>\n

The argument on\u00a0 banks and credit cards\u2026.<\/h2>\n
\"\"
Atome in Sephora. Image credit: Atome.g<\/a><\/figcaption><\/figure>\n

Thai banks foster a lot of payments and financial technology innovation.\u00a0<\/span><\/p>\n

\u201cThai banks are incredibly competitive and well positioned,\u201d says Nan, \u201cas global banks such as Citi and HSBC scale down here, local financial institutions will only get stronger and their consumer products are good.\u201d<\/span><\/p>\n

We also talked about whether Nan expects banks to eventually enter the space to become a potential competitor, and touched on the credit card argument.<\/span><\/p>\n

Skeptics of BNPL often say that the value is similar to credit cards, with various Thai credit card issuers also offering interest free installments on certain purchases, such as electronics. For Nan, the value BPLY offers is different.\u00a0<\/span><\/p>\n

\u201cCredit card penetration in Thailand is relatively low. Although we have approximately 24 million cards, on average people hold about 3 cards,\u201d he says. \u201cIf banks were to do their own version of BNPL, they may be concerned about whether that would eat into the credit card or debit card business. Also, how open would the bank’s BNPL be to other banks’ customers and credit cards?\u201d<\/span><\/p>\n

For independently owned Atome, customers can use any Thai-registered credit or debit card, regardless of their bank affiliation. This is actually very important from a merchant\u2019s perspective, as it doesn\u2019t limit them to just one bank\u2019s customers.<\/span><\/p><\/blockquote>\n

Thailand\u2019s credit card landscape is complex, with under 10% penetration in relation to our population. Credit cards are also difficult to apply for, you would need the necessary documents to do so in person, and proof of reliable pay slips. The customer journey itself is very different, and BNPL offers easier access.<\/span><\/p>\n

\u201cIt\u2019s an incumbent\u2019s dilemma. They have to think about how much they want to disrupt themselves, or how willing they would be to work with new, standalone players.\u201d<\/span><\/p>\n

One key differentiator to credit cards is the nature of the purchases itself.\u00a0<\/span><\/p>\n

\u201cAtome focuses on lifestyle, beauty and affordable fashion,\u201d says Nan, \u201cthere\u2019s actually less overlap with credit cards than you may expect. Credit cards are often kept for big ticket items.\u201d<\/span><\/p><\/blockquote>\n

Thailand\u2019s growing BNPL landscape<\/b><\/h2>\n
\"\"
Atome also applies to offline retailers<\/figcaption><\/figure>\n

Currently, we have yet to see banks launch their own BNPL product, it will likely make more sense for BNPL players to partner with payment processors and providers.\u00a0<\/span><\/p>\n

This doesn\u2019t mean the space isn\u2019t filled with potential challengers.\u00a0<\/span><\/p>\n

Currently, ecommerce marketplace Shopee is offering its own flexible payments option through SPayLater, which allows shoppers to either pay in installments or later.\u00a0<\/span><\/p>\n

\u201cWe are aware of current and potential competitors who are looking to enter the space,\u201d says Nan. \u201cBut I always like to focus on what I am doing, if you just watch out for competitors, you\u2019ll never tackle the work you want to do.\u201d<\/span><\/p><\/blockquote>\n

Because BNPL is so new in Thailand, Atome\u2019s first move advantage will also mean it plays a hand in building the ecosystem. This means the company has to educate the market, incentivize the potential users and onboard brands. So far, Thai brands have been receptive to innovation.\u00a0<\/span><\/p>\n

\u201cLocal brands have been excited about BNPL and have signed on with us quickly,\u201d says Nan. \u201cThis is great because we focused on local players, from EveandBoy to Konvy right away without just sitting on regional partners.\u201d<\/span><\/p>\n

Brands should see BNPL as an added perk, as they get paid in the full amount right away, and these flexible payment terms could incentivize more people to add extra items to cart, or make more spontaneous but affordable purchases.\u00a0<\/span><\/p>\n

This brings us to another point. Challengers of BNPL often say that the model could encourage overspending for millennials and Gen Z shoppers, but Nan doesn\u2019t think that\u2019s the case.<\/span><\/p>\n

\u201cWe have a very transparent payment schedule that requires no racking up debt or hefty, recurring fees,\u201d he says. \u201cIt should actually help shoppers to become more disciplined with spending, as they will know how much is owed every month and they will have to pay it off.\u201d<\/span><\/p>\n

Atome\u2019s Vision<\/h2>\n

Atome only launched in Thailand a couple of weeks ago, but Nan and his team have their hands full with the business.\u00a0<\/span><\/p>\n

\u201cOur goal is undoubtedly to grow our list of local partners, onboard more users and generally educate the Thai landscape about our product,\u201d he says. \u201cEducational content is very important to adoption, especially in the early stages.\u201d<\/span><\/p>\n

In a way, Atome\u2019s BNPL offering may open up new paradigms for improved financial literacy, beyond being a convenient payment method for younger consumers. The structured flexibility could influence some users to be more mindful of what they can afford and how they will manage cash flow to accommodate certain purchases.\u00a0<\/span><\/p>\n

\u201cI am bullish on the value that BNPL can create for consumers in Thailand,\u201d says Nan. \u201cI\u2019m confident that BNPL solutions can enable consumers to increase their basket size by up to 30%, and allow them to effectively manage their cash flow, which will also benefit brands and retailers.\u201d<\/span><\/p>\n

With its estimated growth, BNPL should eventually become synonymous with omnichannel retail, which means Atome is well positioned to capture Southeast Asia\u2019s pandemic fueled ecommerce boom, as well as support the post-Covid19 recovery of the physical retail industry.\u00a0<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Buy Now, Pay Later (BNPL) is having a series of golden moments. Acquisitions of BNPL platforms have only increased this year, from payments company Square\u2019s US$29 billion acquisition of AfterPay, to Amazon\u2019s partnership with Affirm, to PayPal\u2019s US$2.7 billion buyout of Japanese BNPL platform Paidy.\u00a0 The wheel doesn\u2019t stop spinning, and the list goes on.\u00a0 […]<\/p>\n","protected":false},"author":2,"featured_media":2404,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,7],"tags":[807,810,492,809,55,814,64,813,808,811,58,149,812],"yoast_head":"\nBrand Spotlight: Atome - Bitesize<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bitesizebkk.co\/brand-spotlight-atome\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brand Spotlight: Atome - Bitesize\" \/>\n<meta property=\"og:description\" content=\"Buy Now, Pay Later (BNPL) is having a series of golden moments. 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