DUBLIN–(BUSINESS WIRE)–The “Indonesia Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
BNPL payments in Indonesia is expected to grow by 94.7% on annual basis to reach US$ 2669.3 million in 2022.
Medium to long term growth story of BNPL industry in Indonesia remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 44.4% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 1370.7 million in 2021 to reach US$ 24247.2 million by 2028.
Over the last four to eight quarters, buy now, pay later (BNPL) has become one of the most popular payment methods among consumers in Indonesia. While the global pandemic has accelerated the adoption of BNPL products among consumers, the publisher expects the industry to continue its robust growth over the next four to eight quarters.
With the high growth potential offered by the Indonesian BNPL market, the publisher expects BNPL providers to raise funds quite aggressively to further expand their growth.
B2B invoicing firms are launching BNPL solutions for small businesses in Indonesia
The global pandemic has affected businesses across industry verticals, especially small and medium-sized enterprises, leading to cash flow issues in Indonesia. Consequently, resulting in growing demand from SMEs for innovative solutions such as BNPL. As a result of this growing demand, firms are launching new B2B BNPL product which offers SMEs simple and convenient financing options.
In October 2021, Paper.id, the Indonesian B2B invoicing firm, announced that it is launching a new B2B BNPL product for small businesses to help them recover from the global pandemic-related losses.
Currently, SME buyers in the country have only two options to pay for their business-related purchases, bank transfer, and cash. The launch of a B2B BNPL product is, therefore, expected to provide SMEs with a more flexible and convenient payment option.
The publisher expects more B2B BNPL product launches in Indonesia over the next four to eight quarters, as the demand for such a solution is expected to only increase from the short to medium-term perspective.
Digital banks are introducing BNPL products to expand target market in Indonesia
The Indonesian BNPL space is becoming more and more crowded as the demand for such a solution is expected to increase over the next four to eight quarters. Notably, even digital banking players are launching their own BNPL products in Indonesia.
In December 2021, TMRW, the digital banking arm of United Overseas Bank (UOB), announced the launch of TMRW Pay, a BNPL product for e-commerce shopping in Indonesia. According to UOB, over half of the transactions on TMRW credit cards were for e-commerce purchases from January 2021 to October 2021.
As e-commerce shopping continues to grow in the country, consumers are looking for innovative payment methods such as BNPL to finance their purchases. Consequently, TMRW launched the BNPL product to support this growing demand from consumers in the country.
BNPL firms are launching physical pay later cards for consumers in Indonesia
While the usage of BNPL products has surged for completing online purchases, firms are also looking to boost their market share in the offline segment. As a result, BNPL firms are launching physical pay later cards, allowing consumers to pay at physical outlets in the country.
In December 2021, Kredivo announced that the firm had entered into a strategic partnership with Bank Sahabat Sampoerna. Under the strategic alliance, Kredivo is launching Flexi Card, a new pay later payment card, which allows consumers to split their purchases in installments when shopping in-store.
Scope
Key Players
- Kredivo
- Atome
- Akulaku
- Splitit
- Shopee
- Home Credit
- GoJek Paylater
- Indodana PayLater
- AfterPay
- GoPayLater
Indonesia BNPL Market Size and Spending Pattern
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Indonesia Buy Now Pay Later Operational KPIs
- Buy Now Pay Later Revenues, 2019 – 2028
- Buy Now Pay Later Share by Revenue Segments
- Buy Now Pay Later Merchant Commission, 2019 – 2028
- Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
- Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
- Buy Now Pay Later Accounts, 2019 – 2028
- Buy Now Pay Later Bad Debt, 2019 – 2028
Indonesia Buy Now Pay Later Market Share Analysis by Key Players
Indonesia Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
- Online Channel
- POS Channel
Indonesia Buy Now Pay Later in Retail Shopping: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Indonesia Buy Now Pay Later in Home Improvement: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Indonesia Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Indonesia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Indonesia Buy Now Pay Later in Other: Market Size and Forecast
- Gross Merchandise Value Trend Analysis
- Average Value Per Transaction Trend Analysis
- Transaction Volume Trend Analysis
Indonesia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
- Buy Now Pay Later Sales Uplift by Product Category
- Buy Now Pay Later Spend Share by Age Group
- Buy Now Pay Later Gross Merchandise Share by Income
- Buy Now Pay Later Gross Merchandise Value Share by Gender
- Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis
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