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Study Paylater Services on Indonesian E-commerce Platforms

Currently, there are 7 paylater platforms that serve users of the 15 most popular e-commerce platforms in Indonesia

Installment service without a credit card for purchasing goods on the platform E-commerce or familiarly called paylater increasingly common. Simply put, the service allows consumers to buy goods through installments with certain deadlines. The fans continue to grow, along with the more massive use E-commerce to meet various types of needs. According to data Fintech Report 2019 released DSResearch, Paylater (56,7%) is the third favorite service after digital wallets (82,7%) and investment applications (62,4%).

In more depth, there are two main factors that make paylater service penetration higher. First, consumer growth trends E-commerce Indonesia from year to year. According to a McKinsey report, the industry E-commerce in Indonesia is projected to be worth $40 billion by 2022. Meanwhile, as of 2019, the market capitalization value of the trading business online it has touched $21 billion or the equivalent of 294 trillion Rupiah. This is reinforced by the findings of WeAreSocial which states that 90% of internet users in Indonesia have shopped online.

The second factor is related to the low ownership of credit cards from banks. According to Bank Indonesia data, as of February 2020 there were 17,61 million credit cards in circulation. This figure is very small compared to the total population. Credit cards tend to be difficult to obtain, because the requirements are more difficult for most people to meet.

Paylater service provider

Currently in Indonesia there are already several companies fintech which provides paylater services. Its implementation appears in many applications, from digital wallets, ticket bookings, to the most popular on the platform E-commerce and / or online marketplace. Each provider has different specifications and coverage. Variables that differentiate include the limit on the loan value, interest, tenor, loan terms, coverage area, and its integration into third party services.

In this study, DailySocial trying to explore the various paylater services that are integrated in 15 sites E-commerce most popular in Indonesia during the second quarter (Q2) 2020, which is reviewed from statistics on visits to related sites and service ratings in app stores. From the mapping carried out, it was found 7 paylater services that currently accompany consumers to shop online. Here is the list:

Table 1. Paylater service integration in popular Indonesian e-commerce

Paylater ServiceIntegrated E-commerce Platform
KredivoBukalapak, Lazada, Tokopedia, Blibli, Elevenia, JD.id, Ralali, iLotte, Jakmall, Bhinneka, Matahari.com, Fabelio, Sociolla
AkulakuBukalapak, Blibli, JD.id, Alfacart
Home creditTokopedia, Bukalapak, Blibli, Bhinneka
your creditElevenia, JD.id, Bhinneka
indodanBlibli, Elevenia
Shopee PaylaterShopee

Each service is generally a payment option that users can find when making payments checkout his shopping in the service E-commerce used. To get credit benefits, users must first register on the selected paylater platform, verify, until they get the credit limit given. based on credit score.

Regarding the loan application requirements, each platform also presents different criteria. However, if a common thread is drawn, all services require identity and supporting documents, such as electronic ID cards, NPWP, or other evidence documents. These files are certainly used as one of the variables in determining the customer's credit score -- usually leading to the amount of the loan limit given. Some other platforms require a minimum monthly income limit, because they offer credit with a fairly large maximum limit.

Table 2. Various requirements for submitting paylater services

Paylater PlatformSubmission Terms
AkulakuMinimum 23 years old, e-KTP + other documents (NPWP, Current Account, or Salary Slip)
AtomAge 18-55 years old, e-KTP, NPWP
Home creditMinimum 21 years or 19 years if married, minimum income of IDR 1.500.000 per month, e-KTP + other documents (NPWP, Current Account, Salary Slip, or BPJS TK)
indodanAge 17-55 years, have a steady income with a minimum income of IDR 3.500.000 per month and have worked for at least 3 months, e-KTP
your creditPhotocopy of ID card and original, salary slip, photocopy of passbook cover and contents of savings book showing transactions for the last 3 months (for entrepreneurs)
KredivoMinimum age 18 years, have a minimum fixed income of IDR 3.000.000 per month, e-KTP, NPWP
Shopee PaylaterShopee account must be verified and at least 3 months old, e-KTP

Although it is intended for purchases on the platform E-commerce, all transaction administrative processes are carried out through the paylater provider's application or site. During the payment process, the user will be directed to the relevant application or site. Full approval is done on the side of the paylater provider. The validation process itself takes an average of minutes or a maximum of 2x24 hours.

Paylater credit specifications

Another variable that is usually taken into account by potential users is the matter of the credit limit given. The amount is different for each platform. From the studies conducted, by looking at the information listed on the paylater provider site and E-commerce In an integrated manner, the findings obtained are the minimum limit that can be submitted at this time is IDR 750.000, while the maximum limit given is IDR 30.000.000.

Table 3. Maximum and minimum credit limits that can be submitted at paylater services

Paylater PlatformGranted Credit Range
KredivoIDR 1.000.000 to IDR 30.000.000
indodanIDR 1.000.000 to IDR 25.000.000
AkulakuIDR 1.000.000 to IDR 20.000.000
your credit IDR 1.250.000 to IDR 20.000.000
Home creditIDR 1.000.000 to IDR 10.000.000
AtomIDR 1.000.000 to IDR 8.000.000
Shopee PayLaterIDR 750.000 to IDR 1.800.000

Regarding loan interest, many of the paylater platforms charge a percentage that is adjusted to the tenor and amount of the loan. Only 2 players charge a fixed interest -- in order of smallest it is Kredivo and Atom. The loan interest range charged on various platforms is between 0% to 6%. Here is the complete list:

Table 4. The range of interest charged by paylater services

Paylater PlatformFlowers Worn
Kredivo0% (fixed, for 30 days) 2,6% (fixed)
your creditFrom 1,5%
indodan2% to 4%
Shopee PayLaterFrom 2,95%
Atom3,33% (fixed)
Home credit2,49% to 3.99%
Akulaku3,2% to 4,5%

The tenor or term of the option loan is also quite varied, with a period ranging from 1 to 12 months.

Table 5. Loan tenors offered by paylater services

Paylater PlatformChoice of Loan Tenor
Akulaku1, 2, 3, 6, 9 and 12 months
Kredivo1, 3, 6 and 12 months
indodan1, 3, 6 and 12 months
Shopee PayLater1, 2, 3 and 6 months
Home credit3, 6, 9 and 12 months
your credit3, 6, and 12 months
Atom3 and 6 months

Until now, paylater services or online loan platforms in general still limit themselves to accommodate users in certain cities. However, if you listen to the news, all companies continue to expand and expand their business presence. There are many factors that underlie this. One of them is the need for a representative office in each city, both for operations and partners, especially for those who have large loan sizes.

From the information described for each platform on the loan terms page, we summarize each of the areas covered by the paylater platform developer. Some do not provide specifics. We've tried contacting each one via email, but so far haven't gotten a response.

Table 6. Coverage of paylater service cities

Paylater PlatformArea Coverage
KredivoGreater Jakarta, Bandung, Surabaya, Semarang, Palembang, Medan, Bali, Yogyakarta, Solo, Makassar, Malang, Sukabumi, Cirebon, Balikpapan, Batam, Purwakarta, Padang, Pekanbaru, Manado, Samarinda, Kediri
indodanGreater Jakarta, Banten, West Java, Central Java, East Java, Bali, Sumatra, Kalimantan, Sulawesi
AkulakuGreater Jakarta, Bandung, West Java, Central Java, East Java, Medan, Padang and Palembang
your creditJabodebek, West Java, Central Java, East Java, Sumatra, Kalimantan, Sulawesi (limited city coverage in each province)
Shopee PayLaterNot specifically informed
AtomNot specifically informed
Home creditNot specifically informed

Other terms

The registration process and completeness of the files are mostly done through applications developed by each paylater platform provider. Some platforms also provide services through a form available on the site E-commerce partner.

Data collection related to security systems is also our focus in this study. Society today is still faced with the presence of players illegal ones who try to offer instant loans, even though the OJK task force also carries out continuous supervision and action. In addition, many crimes have begun to stalk the public, for example, there are individuals who use stolen data to register themselves on financing platforms. online. At least the more complete security options will minimize the risk of account misuse or data leakage.

 Table 7. Security systems applied in paylater services

Paylater PlatformTransaction MediumSecurity System
AkulakuApplicationOTP SMS
AtomPartner site E-commerce, ApplicationOTP SMS
Home creditApplicationOTP SMS
indodanApplicationOTP SMS
your creditPartner site E-commerceSMS OTP and PIN
KredivoApplicationSMS OTP, PIN, Security Question
Shopee PayLaterApplicationPIN, Fingerprint

Basically there is a refund obligation by the consumer. For that they also provide the widest payment channels. Most applications have features virtual accounts which allows users to pay by transferring a nominal amount to a bank account number that has been prepared. Not a few offer payment services through minimarkets and digital wallets. There are also partners with POS Indonesia and payment services on the platform E-commerce.

 Table 8. Administration fees that accompany paylater services

Paylater PlatformPayment ChannelMiscellaneous expense
AkulakuThrough the application (Virtual Account), Minimarket, GoPayThere is a handling fee and DP. Depends on item, merchant and platform E-commerce his.
AtomVia app (VA)Di JD.id service fee equivalent to 11% for admin fees.
Home creditAdvance payment via: Minimarket or POS Indonesia. Installment payments via: Minimarket, BCA, BNI, BRI, ATM Bersama, Mandiri, POS Indonesia, GoPayThe administration fee is IDR 199.000, the monthly installment payment fee is IDR 5.000, the initial payment fee is IDR 150.000.
indodanThrough the application (VA), Minimarketadmin fee 1% or a minimum of IDR 1.000.
your creditThrough the application (VA), Tokopedia, Pos Indonesia, KreditPlus branch officesIDR 50.000 per transaction
KredivoThrough the application (VA), Minimarket, Tokopedia, Bukalapak, Shopee0%-1,5% per transaction
Shopee PayLaterVia app (VA)1% handling fee per transaction.

Another thing that sometimes borrowers don't realize when applying or doing calculations at the beginning are other costs. Generally, these fees are for admin fees pegged every time the user makes a return transaction. The amount varies, according to the policies carried out by the paylater platform developer.

Installment Calculation Simulation

To get a full picture of the amount to be paid by consumers, the following is a simulation of the calculation. Assume that all service providers offer a loan tenor of 6 months with a nominal transaction of IDR 10.000.000 without any down payment, admin fees and other costs. The simulation is done by doing check out through E-commerce which provides a related paylater platform to determine the amount of interest charged

 Table 9. Simulation of paylater service calculations

Service ProviderFlowerTenorTransaction AmountInstallment per MonthTotal Billing 6 Months
Kredivo2,60%6 months IDR 10.000.000IDR 1.926.660IDR 11.559.960
Shopee PayLater2,95%6 months IDR 10.000.000IDR 1.961.667IDR 11.770.000
indodan3%6 months IDR 10.000.000IDR 1.966.667IDR 11.800.000
Akulaku3,05%6 months IDR 10.000.000IDR 1.973.000IDR 11.838.000
Home credit3,31%6 months IDR 10.000.000IDR 1.997.879IDR 11.987.273
Atom3,33%6 months IDR 10.000.000IDR 1.999.666IDR 11.998.000
your credit4,76%6 months IDR 10.000.000IDR 2.142.179IDR 12.853.077


From the above review, there are several things that can be concluded. Most services E-commerce which have great traction have embedded paylater as a payment option. Kredivo become a platform that has the widest reach, both in terms of integration and service cities. Regarding the loan range, Shopee PayLater offers the lowest value starting from Rp. 750 thousand for each application, while the highest range is owned by Kredivo, namely users can get a limit of up to Rp. 30 million.

For interest, from the statistics obtained Kredivo offers the lowest percentage, starting at 0% (fixed) for loans with a 30 day tenor. Meanwhile, for installments in the range of 3 -12 months, it can be seen from the transaction simulation that: Kredivo still has the lowest percentage with a fixed interest rate of 2,60% per month, followed by Shopee Paylater and Indodana. Other paylater platforms charge variable interest depending on the amount, new/registered user status, type of goods and tenor submitted, starting from the lowest 1,5% to the highest 6%. This simulation is taken by doing check out through E-commerce which provides a related paylater platform without including other costs such as down payment, service fees and admin fees, so there is a possibility that some paylater players charge higher fees than the simulation shown above.

Regarding the submission requirements, on average each platform has the same variables, such as age, ownership of an electronic ID card, and other supporting documents. Some also have special specifications to reduce the risk of credit failure, for example related to monthly income or account age E-commerce used.

The security system is also worthy of consideration to ensure transaction security. Most of the paylater applications use the SMS OTP mechanism for account verification, some have additional options such as PIN or fingerprint authentication as implemented by Shopee PayLater. Apart from interest, the platform also charges an administration fee which is generally charged when a user makes a transaction.

The various service options will certainly spoil the user. By knowing the details and specifications of each platform, it is hoped that users can get better benefits to facilitate loan transactions without a credit card for shopping at e-commerce.


*Marsya Nabila contributed to the study of the preparation of this article

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