Even in markets with high credit card penetration, shopping cart abandonment remains a major cause of concern for online vendors. Now imagine the situation in Southeast Asia, where many countries have a large number of e-wallets, instant purchase of the following payment services and other forms of payment. Bank transfers are also a popular choice for online purchases, but involve several steps, which increase the risk of shopping cart abandonment.
Arrow wants to make the checkout process easier by acting as a layer on top of payment gateways. It supports more than 50 different payment methods, including all major payment methods 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 board member Maxis Ooi Huey Tyng, Paysend CEO Steve Vickers, and Coinbase Southeast Asia head Hassan Ahmed also participated in the round.
Arrow Co-Founders: Sudhan Raj, Sebastian Roervig and Neo Liat Beng
Launched 15 months ago, Arrow was founded by Liat Beng Neo and Sebastian Roervig and is now used by 100 merchants. Liat Beng Neo told TechCrunch that the main reason for cart abandonment is that “current checkout processes in the region do not account for its incredible diversity. Southeast Asia is made up of 11 different countries, each with their own unique e-commerce habits and nuances.”
For example, he adds that some areas have poor internet connections, so customers may skip the checkout process if it involves clicking on multiple sites. Even common payments, like bank transfers, involve several steps, and each step means the risk of a customer changing their mind about a purchase.
In addition to payment methods, Arrow also integrates shipping information and linked loyalty programs so customers can see everything on a single checkout page. Arrow can be integrated into shopping platforms like WooCommerce or Magneto, or through APIs that allow merchants to replace their existing storefront with Arrow. For social commerce, retailers receive a payment link that they can text to their customers.
Liat Beng said Arrow can be used by all types of merchants, but focuses on FMCG and other discretionary goods and services, because those tend to have high cart abandonment rates. . It also specifically caters to wholesalers who sell in bulk, as they will benefit most from the improvements to cart abandonment rates, he added.
Arrow currently operates in Singapore, Malaysia, and Indonesia, with plans to focus on those three markets, and plans to expand into the Philippines, Thailand, and Vietnam.
