Service Differentiation that Gopay Paylater is Trying to Serve

Entering the third year, Findaya (PT Mapan Global Reksa) developer of the Gopay Paylater service last week released the "Pick Your Limit" feature to answer user needs in financial management that vary each month. This innovation is claimed for the first time in the ecosystem fintech Indonesia.

“We want to meet the needs of different Gopay Paylater users and want to have complete control over their finances through the Pick Your Limit innovation. This is in accordance with our commitment to make paylater as a trusted friend of the Indonesian people in managing finances," said Head of Growth Gopay Paylater Neni Veronica in an official statement.

Separately in a joint interview DailySocial, Neni explained, users have full control over determining the Gopay Paylater limit starting from a multiple of Rp. 100 thousand below the user's initial limit. As an illustration, if a user has a limit of IDR 500 thousand, then with Pick Your Limit, he can determine the limit below it in multiples such as IDR 400 thousand, IDR 300 thousand, to IDR 100 thousand.

DailySocial also asked about the maximum limit given, but Neni did not respond. From our observations, starting from Rp. 500 thousand to Rp. 1,25 million.

So far, Gopay Paylater does not charge interest for each limit usage, but uses one fixed service fee every month. The nominal fee for this service depends on how often the user uses the service, the more often it is, the cheaper the fee will be.

Take for example, DailySocial monitoring with a limit of Rp. 750 thousand, the fee quoted is Rp. 25 thousand. Meanwhile, with a lower limit, for example Rp. 100 thousand, the service fee is much cheaper at Rp. 7.500, Rp. 200 thousand is subject to a fee of Rp. 10 thousand, and so on.

Neni continued, the use of the Gopay Paylater service has been expanded, not only can it be used for all transactions in the application Gojek and offline merchant affiliates. Now the limit can be used to pay at partners E-commerce such as Blibli, JD.id, Zalora, and others.

It was revealed that last year the growth of transactions using Gopay Paylater increased by 3,3 times. The largest transactions were contributed by purchasing food through GoFood and paying various bills on GoBills.

"Gopay Paylater is one of the most popular services for users, as evidenced by an increase in transactions of up to 3,3 times throughout 2020 with NPL below the industry."

Service trends paylater in Indonesia

Not only Indonesia, trend paylater it is also mushrooming in Singapore. There, it is more familiar to use the term Buy Now Pay Later (BNPL). According to the released 2019 Fintech Report data DSResearch, paylater (56,7%) became the third favorite service after digital wallets (82,7%) and investment applications (62,4%).

There are two main factors that make service penetration paylater getting higher. First, the growth trend of Indonesian e-commerce consumers 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.