Know Kredivo, Pioneer and Market Leader “Buy Now Pay Later” in Indonesia

Talking about the fintech industry in Indonesia, of course, there is always some interesting news in it. The development of the fintech industry which is growing very rapidly is triggered by many things. The latest, one of which is the findings from the DSInnovate report which states that the GMV (Gross Merchandise Value) reached US$70 billion is believed to be one of the reasons fintech is increasingly popular in Indonesian society.

The form of fintech in Indonesia comes with a variety of services. Among the existing services, one of the current services favorite by Indonesian consumers is the BNPL (Buy Now Pay Later) service. As the term implies, this service facilitates consumers to enjoy installment facilities without a credit card to shop on e-commerce platforms.

When present only in the past few years, the adoption of BNPL services has grown significantly. Of course, it didn't happen instantly. The growing trend of e-commerce consumers in Indonesia from year to year, as well as low credit card ownership are the two main factors why paylater services are the mainstay of using credit services - especially for online shopping purposes.

From these two factors, several BNPL service providers have started to emerge. One of the pioneers worth noting is Kredivo. This fintech startup under the auspices of FinAccel - a financial technology company from Singapore has successfully introduced the concept of "Buy Now Pay Later" (BNPL) for the first time in Indonesian society since 2016.

It didn't take long, Kredivo considered capable of appearing to lead the market for the market share that requires consumptive credit facilities, without having to have a bank credit card, which until now has very low penetration. This need is further enhanced by the convenience and flexibility of the services offered.

Not without reason. In his research, Kredivo claimed, the paylater users he manages stated that they gave a good satisfaction response, related to the easy submission process, transaction experience, to administrative requirements that tend to be uncomplicated.

The research results are also in line with the flexibility of paylater credit offered Kredivo, with a number of product unique selling point in the form of a high credit limit (up to 30 million rupiah), an installment tenor of up to 12 months, to the availability of services at more than 1000 merchants in Indonesia. Not to forget, transaction security and user data are also the focus of product development with security features in the form of encrypted user data. Besides, legally Kredivo has also been officially registered and supervised by OJK.

Through the optimal efforts above, do not be surprised if Kredivo able to dominate the BNPL market easily. In a paylater study released by DailySocial.id, the platform Kredivo has been integrated in almost all leading e-commerce sites in Indonesia such as Bukalapak, Lazada, Tokopedia, Blibli, Elevenia, JD.id, Ralali, iLotte, Jakmall, Bhinneka, Matahari.com, Fabelio, and also Sociolla.

From a user and business perspective, Kredivo also successfully trusted by more than 5 million users. In the description, the user base Kredivo claimed to have doubled over the last 10 months, as well as annual revenue which has also doubled over the past 7 months.

This becomes interesting, when in the midst of the challenges of an economic slowdown due to the pandemic, Kredivo actually managed to achieve significant growth, and managed to lead the BNPL market with "share wallet" which reaches at least 50% in the majority of e-commerce merchants in the country.

This is in line with what the CEO said Kredivo Indonesian, Umang Rustagi, in fintech report 2021 which was published late last year. "Kredivo As an e-commerce enabler benefit also from the e-commerce trend as the market continues to grow rapidly. As an e-commerce enabler that focuses on paylater services, there is an increasing demand for this service. Over the past ten months, customer Kredivo increased by 2x.” explained Umang.

Travel Kredivo in accelerating significant growth is expected to continue. Apart from pocketing the brilliant number of users and wallet share, how are you? plan to go public, followed by funding gain latest and strategic partnership with various entities (one of them with Bank Sampoerna released “Paylater” Flexi Card) is believed to be ammunition Kredivo, in strengthening its position as a pioneer, as well as a leader in the online credit market in Indonesia.

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