Even in markets where credit card penetration is high, shopping cart abandonment is still a major concern for online merchants. Now imagine the situation in Southeast Asia, where many countries have dozens of e-wallets, buy now, pay later services and other forms of payment. Bank transfers are also a popular option for online purchases, but involve several steps, increasing the risk of cart abandonment.
Arrow aims to facilitate the checkout process by acting as a layer on top of payment gateways. It supports over 50 different payment methods, including all major ones in Singapore, Malaysia, and Indonesia (including Atome, GrabPay, Boost, and GoPay).
The company announced today that it has raised $4.8 million led by Sequoia Capital India, with participation from Alpha JWC and Zinal Growth. Angel investors including AIG and Maxis board member Ewe Huey Tyng, Paysend Chief Operating Officer Steve Vickers and Coinbase Southeast Asia chief Hassan Ahmed also participated in the round.
Launched 15 months ago, Arrow was founded by Liat Beng Neo and Sebastian Roervig and is now used by 100 traders. Liat Beng Neo told TechCrunch that a key reason for cart abandonment is that “the current checkout processes in the region do not account for the incredible diversity. Southeast Asia is made up of 11 different countries, each with their own unique e-commerce habits and nuances.”
For example, he added that some regions have poor internet connectivity, so customers can exit the checkout process if they have to click on multiple web pages. Even popular payments, such as bank transfers, involve several steps, and each step carries the risk of a customer changing their mind about a purchase.
In addition to payment methods, Arrow also integrates shipping information and affiliated loyalty programs, so customers can see everything on one checkout page. Arrow integrates into retail platforms such as WooCommerce or Magneto or through APIs that allow merchants to replace their existing storefronts with Arrow. For social commerce, retailers get a payment link that they can send to their customers.
Arrow can be used by all kinds of merchants, but it targets FMCG and other discretionary goods and services, Liat Beng said, because those often have a high abandoned cart rate. It also specifically targets merchants trading high order volumes, as they would benefit most from improvements in cart abandonment rates, he added.
Arrow currently operates in Singapore, Malaysia and Indonesia and plans to focus on those three markets for now, while planning to expand into the Philippines, Thailand and Vietnam.
This post Arrow saves online shopping carts in Southeast Asia – TechCrunch was original published at “https://techcrunch.com/2022/04/24/arrow-saves-online-shopping-carts-in-southeast-asia/”