Paylater Becomes a Daily Payment Method, Use Is Increasingly Widespread

Research results Kredivo and Katadata Insight Center mention paylater become a stimulus for people's purchasing power in shopping online. The percentage reached 16,2%, superior to the bank transfer method (10,2%) which was in fourth place. The first place is occupied by e-wallet (46,8%), followed by cash/cash on delivery (22,6%).

"Now people use it paylater for shopping online. Start with comfort. In the past, it was only for urgent needs," said Director of Katadata Insight Center Adek Roza, as quoted from Time.

In annual research entitled "Indonesian e-Commerce Consumer Behavior", highlighting the percentage of service users paylater in platforms E-commerce increased significantly, from 28,2% in 2022 to 45,9% in 2023. Meanwhile, as many as 60,9% of respondents who have used paylater mentioned that the platform is the first credit they get, especially for socio-economic status (SES) C.

Along with related education paylater, users began to switch to payment methods for daily needs. Among them for shopping for goods (87,1%), monthly bills (51,8%), as well as pulses and internet packages (48,9%).

The category of goods that are most purchased using paylater are fashion (66,4%), household appliances (52,2%), electronics (41,1%), gadgets/computers (34,5%), and body care and beauty (32,9%).

This finding is interesting because now consumers buy not only expensive products, but also products for their daily needs. The increase in activities outside the home has made people pay more attention to their appearance so that the need for fashion products is increasing.

In addition, usage patterns paylater has changed to be used more for shopping for monthly needs with short tenor installments (56,8%), rather than for sudden needs (52,1%). This change occurs as the user's knowledge level increases paylater which is now at 32,0 (high level) compared to the previous year at 26,0 (medium level).

Responding to this, the Director of the Center of Economic and Law Studies, Bhima Yudhistira, conveyed his presence paylater It needs to be recognized that it is sufficient to provide the benefits of providing access to credit that is safe, affordable and easy for almost all levels of society. This study also corroborates that paylater not only used for urgent needs, but as an efficient payment method for daily transactions.

"In the future, along with the use paylater increases, it will increase further multiply effect or long-term derivative impacts for the digital economy industry, starting from accelerating infrastructure development to employment absorption which will have an impact on the rotation of the economy," said Bhima.

For the record, this research utilizes 22 million sample transactions that come from 2,2 million sample users Kredivo across 34 provinces and across six platforms E-commerce in Indonesia in the period January to December 2022.

Shopping behavior findings online the other

1. Consistent increase in transactions in tier 2 and 3 cities, with an increase of 33% in 2020, 36% in 2021, and 43% in 2022, although the transaction value is still dominated by tier 1 cities, namely 57%. This indicates that the purchasing power of people in tier 2 and 3 cities has been maintained well into the post-pandemic period and the share of e-commerce is increasingly expanding to the regions.
2. Older consumers are increasingly adaptive to usage E-commerce with consistent increases in the last 3 years, namely the age group 36-45 from 19% (2020) to 24% (2022), and the age group 46-55 years from 4% (2020) to 6% (2022). Penetration E-commerce which has reached a decade impact on the purchasing power of older consumers in E-commerce which also continues to grow.
3. Entering the post-pandemic period, there has been a shift in people's spending patterns with combined shopping behavior online and offline become a trend. As many as 79,1% of consumers choose to use the combined shopping method online and offline, with 21% of the total presentation making more purchases offline and 58,1% making more purchases online. Meanwhile, shopping trends online without any combination offline decreased from the previous 28% to 18,7%.
4. The shifting trend can also be seen from transactions per product category, with the previous 2022% decline in the value of gadget transactions in 37 to 33,7% yoy. Meanwhile, there was an increase in transaction value in fashion products from 12,9% to 15,6% yoy. This trend is in line with the start of a return to activity offline society during the 2022 pandemic transition.
5. Trends in spending preferences varied by age group, marital status and number of children. Pulse and voucher is the most demanded need by consumers based on age group, while single consumers transact the most for gadgets, and consumers with 1-2 children buy the most children and baby products, while consumers with 3-5 children tend to focus more on household appliances and food.
6. Although overall transactions in 2022 increased compared to 2021, there was a decline in the fourth quarter of 2022 due to issues of recession and global economic turmoil, with a Q4 transaction value of 38,6% to 33,3% yoy.