1. Startups

Collaborate with Kredivo, Telkomsel Inaugurated BNPL Services “Telkomsel paylater”

This service offers a limit of up to 30 million for products in the ecosystem Telkomsel

PT Telekomunikasi Selular (Telkomsel) to be the next telecommunications company offering BNPL services or buy now pay later specifically for telco products through "Telkomsel Paylater". In developing this product, Telkomsel working with fintech startups under the auspices of FinAccel, Kredivo.

This collaboration is also part of the company's efforts to present digital products and services customer-centric. Telkomsel and Kredivo said to be optimizing digital ecosystem assets owned to open up more opportunities by providing integrated digital product financing convenience, which customers can access through the MyTelkomsel.

Planning & Transformation Director Telkomsel Wong Soon Nam revealed, presence Telkomsel PayLater is a new chapter for both industries in creating an alternative solution for the community through easy access to credit that is safe, flexible and affordable to fulfill digital lifestyle needs.

Telkomsel PayLater offers an exclusive instant credit solution that can be used to purchase products and services within the ecosystem Telkomsel through MyTelkomsel. The limits given also vary, starting from Starter (under 1 million), Basic (under 3,5 million), and Premium (up to 30 million). For now, the available tenor options are only 30 days with 0% interest.

For users Telkomsel who wish to use the service Telkomsel PayLater, can directly open the My applicationTelkomsel then register. To enjoy this service, users must also be registered on the platform Kredivo. Considering invoice transactions made using Telkomsel Paylater will automatically enter the bill Kredivo.

Mentioned about the target user, General Manager Kredivo Indonesia Lily Suriani revealed that this service targets people who already have a steady income and are digitally ready. For now, the new service is available on the Android platform and only offers products within the ecosystem Telkomsel.

going forward, Telkomsel PayLater is said to be developed in stages outside platform MyTelkomsel. This development will continue Telkomsel PayLater can also be a digital financial service solution for the digital ecosystem Telkomsel others, starting from Device Bundling, Dunia Games, MAXstream, to Telkomsel Orbit.

Telkomsel has consistently presented various initiatives in strengthening the digital ecosystem, including by establishing a separate entity that focuses on developing corporate digital initiatives, INDICO. Several digital products that have been launched, viz key (edtech) and Tape (healthtech).

BNPL services in Indonesia

The Indonesian fintech industry continues to grow with the presence of new products that offer a variety of services. One of them that is currently in demand is BNPL or buy now pay later. In general, BNPL is a short-term financing option that allows customers to purchase products and pay later, interest-free or at low interest.

One of the driving forces for the growth of this service is the rapid growth of e-commerce transactions in the country. Based on the research conducted Kredivo for respondents who made non-cash payments on e-commerce platforms, there was an increase in transactions using paylater by 10% from 28% in 2021 to 38% in 2022.

In the same findings, there are a number of reasons respondents want to use the service paylater, mainly to buy sudden/urgent needs (58%), shopping with short term installments or less than one year (52%), and getting more attractive promos (45%).

According to the Global Payments Report published by FIS, companies  US-based fintech, paylater accounted for 2,9% of total transactions E-commerce globally in 2021 and is projected to increase to 5,3% in 2025. The data shows great potential paylater as one of the digital payment methods of choice for consumers on a global scale.

In Indonesia alone, there are already several players offering BNPL services, including Akulaku, Kredivo, GoPayLater (in collaboration with Findaya), Traveloka PayLater and Shopee PayLater. Based on the results of the DailySocial survey, Shopee PayLater is the service most used by consumers. The percentage reaches 78,4% compared to other paylater services.

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