Research Kredivo: Paylater Options Are Getting Considered to Pay Online Shopping

Research Kredivo and Katadata Insight Center (KIC) showed that 27% of the 3560 respondents used the payment method paylater when shopping on the platform E-commerce over the past year. Although, the payment option with a digital wallet is still the main choice of respondents.

KIC Research Director Mulya Amri explained that digital wallets were still the main choice of respondents over the past year. But the number of users paylater on the platform E-commerce started to increase. “More than 50% of new users use paylater di E-commerce last year or during the corona pandemic," he said during a virtual press conference, Wednesday (9/6).

This is the second year of KIC and Kredivo collaborate on research. In this edition, "Consumer Behavior of E-Commerce Indonesia 2021", also analyzes consumer payment behavior and usage paylater in the midst of a pandemic. KIC utilizes primary data of more than 10 million transaction samples from six players E-commerce Indonesia's largest in 2020 and nearly one million user samples Kredivo from all over Indonesia collected directly by Kredivo.

Furthermore, from this research, the majority of respondents considered that paylater is an alternative to credit, but with an easy process. Here are the details:

In addition, the survey also asked the extent of the respondents' knowledge of the product paylater. As many as 86% of people stated that they already knew with a moderate level of knowledge. It could be said, that people have started to know the concept paylater, although they have not used their products directly. This can be an opportunity that the players can work on paylater going forward.

Mulya also added, almost all respondents (71%) who use paylater will continue to use it. In fact, 49% said they would increase their use.

The results of this research were carried out by conducting a survey online during 26-30 March 2021. The majority of respondents are women (64%), men (36%). In terms of age, 68% of respondents are millennials or 23-38 years old. Then, generation Z (13-22 years) 16%, generation X (39-54 years) 15%, and baby boomer (55-70 years) 1%.

Meanwhile, from the expenditure side, 36% of respondents had expenditures of Rp. 2 million-Rp 4 million, 30% less than Rp. 2 million, 21% more than Rp. 6 million, and 13% between Rp. 4 million-Rp. 6 million.

From primary data Kredivo, KIC analyzes the Consumer Behavior of E-Commerce Indonesia 2021. There are a number of findings that:

1. There has been an increase in the average transaction value consistently in almost all product categories due to consumers shifting to online shopping. This shows the increasing consumer confidence in digital transactions, although the distribution has not been evenly distributed in several regions.

2. Older consumers are more comfortable shopping online. In the midst of the dominance of gen Z and millennials, generation X (age group 36-45) experienced an increase in the number of online shopping transactions from 13% in 2019 to 19% in 2020.

3. The pandemic has changed consumer spending preferences when transacting online. Because consumers are more active from home, the pandemic has pushed consumers to buy products that aim to increase productivity and reduce spending on non-essential products. This can be seen from the decrease in the transaction volume of fashion products (30% in 2019 to 22% in 2020) while there was a significant increase in product categories such as household appliances, reloads and vouchers, as well as food.

4. Online shopping promotions and festivals are still effective in attracting consumers to shop. National Online Shopping Day (12.12) and twin date shopping festivals such as 9.9 and 11.11 proved to be still effective in attracting consumers to shop. The average number of transactions on 11.11 and 12.12 in 2020 increased to 3 times the average daily transaction in 2020.

"Research carried out Kredivo together with the Katadata Insight Center this year reinforces our conclusion that e-commerce adoption will continue to increase every year. In addition to increasing public confidence in E-commerce, the pandemic also encourages people to move to digital transactions [..]," said VP Marketing & Communications Kredivo Indina Andamari.