Together with Ramayana, Kredivo Strengthen Paylater Presence in the Offline Realm

Kredivo announced a partnership with Ramayana to provide payment options paylater in 101 outlets spread throughout Indonesia. This strategy is taken in view of the growth of users paylater higher levels have been recorded from tier two and three cities that have the potential to be worked on.

This partnership is considered beneficial for both parties in order to encourage growth shopping offline through flexible digital payment alternatives. At the same time, the integration of digital financial services and physical outlets from retail players is increasingly becoming the key to increasing economic growth, especially in second- and third-tier cities. Ramayana itself is a fashion retailer that has a good presence in these cities.

Quoting from the report “Unlocking The Next Wave of Digital Growth: Beyond Metropolitan Indonesia” that published by Alpha JWC Ventures, predicts second- and third-tier cities will become the largest contributor to per capita income in 2030 with a contribution of 49% to 51%. This condition is supported by paylater which has shown potential as a digital payment product that can drive increased financial inclusion in these cities.

Separately, citing from a survey published in Fintech Report 2021, paylater became the second favorite product (68,9%) after e-money (80,2%). higher than cash loans (53,1) wealthtech (44,7%), and (38,3%). It is also suspected that credit card penetration is still minimal, while the need for installment payment methods is increasing.

Powered by internal data Kredivo, mentioned that user paylater in the second and third tier areas, it increased by 52% in the first semester of 2022 on a yoy basis. These users use their limit the most to shop for fashion products with the top position (20,1%), followed by food products (18,3%) and health products (18,6%).

“Reflecting on our experience serving the needs of more than 6 million users in various parts of Indonesia, we believe in the great impact we can create through collaboration with Ramayana. Through Ramayana's strong network, we hope that this effort to expand digital credit services can accelerate the regional economy, especially the stretching of the fashion retail industry in second- and third-tier cities," said VP Marketing & Communications. Kredivo Indina Andamari in an official statement yesterday (25/8).

Indina's statement was also supported by Ramayana representatives, represented by Alexander A. Tumbel as Head of Loyalty Program & Merchant Acquisition Division. Alexander said the company's commitment is to always provide quality fashion products and innovate according to consumer needs and changing eras. Therefore, even though it's all over now online, but the shopping experience offline must continue to provide new experiences.

"Integration online and offline so key and we as a leading player in the Indonesian retail industry are ready to increase the convenience of shopping for customers by providing more innovative payment options such as paylater. We are optimistic about our cooperation with Kredivo can be a driving force for the growth of the retail industry in Indonesia," he explained.

Strategy omnichannel

Effort Kredivo in encouraging transactions from merchants offline actually already started since 2019. However, at that time merchantit is still limited and can only be used for users who live in the Greater Jakarta area. The experience offered is exactly the same when shopping online, consumers can buy goods and pay in installments up to 12 months and interest 2,6%. In addition to Ramayana, the company has previously collaborated with various merchant, including MAP and Alfamart.

Of the many players paylater, each has a unique value proposition that is presented to attract users. One of them is through strategy omnichannel made by Atom. claimed, Atome products very easy to integrate into point-of-sales physical, website or even mobile app. Unlike other players, usually other players may focus on payments for e-commerce. However, Atome also supports its offline partners.

“For less tech-savvy merchant partners, we provide integration support omnichannel through platforms such as Shopify, WooCommerce, and other payment service providers to digitize and drive traffic to their stores,” said General Manager of Atome Indonesia, Winardi Wijaya.

For Atome, shopping activities offline still has a large role in all transactions in Asia, including Indonesia. Physical shopping is still considered to be a social activity that is in great demand by the public -- for example, to get direct experience of seeing and touching products before buying. In addition, the model omnichannel It is also felt that it is increasingly needed by today's young shoppers to produce a more flexible shopping experience.

Atome products can be enjoyed free of charge, with no interest applicable for timely payments. The company only charges an admin fee of IDR 80 thousand and only applies if the payment is missed. In monetization, Atome charges merchant discount rate (MDR) to merchants for the services they enjoy.