Indonesia Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2024 Update

According to PayNXT360, BNPL payments in the country are expected to grow by 16.3% on an annual basis to reach US$7,573.2 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.7% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$6,513.7 million in 2023 to reach US$12,591.0 million by 2029.

The rising inflation, coupled with the decline in disposable income, has led millions of Indonesians towards buy now pay later schemes over the last 12 months. PayNXT360 expects the adoption to further grow in the Indonesian market, supporting industry growth over the medium term. However, the number of consumers falling into a debt trap is also rising at a rapid pace.

Key Developments in the BNPL Sector in Indonesia

Indonesia's Buy Now Pay Later (BNPL) sector has seen several key product launches that are driving growth and innovation in the market. Here are some of the notable developments:

Product Launches and Innovations

In July 2024, Indonesian tech company GoTo announced a partnership with TikTok to launch a "Buy Now, Pay Later" (BNPL) product called GoPay Later on TikTok's ShopTokopedia platform. This expands their existing collaboration aimed at fueling Indonesia's digital economy growth. GoPay Later offers simplified credit approval, credit limits up to IDR 10 million, and flexible tenors of 1 to 12 months.

Strategic Partnerships

GoTo and TikTok: In July 2024, GoTo partnered with TikTok to launch GoPay Later, a BNPL service integrated into TikTok's ShopTokopedia platform. This collaboration allows users to access flexible payment options while shopping on TikTok, aiming to boost e-commerce engagement in Indonesia.

Mergers and Acquisitions

Kredivo and Bank Bisnis: Kredivo, a leading BNPL provider in Indonesia, acquired Bank Bisnis and rebranded it as Krom Bank. This strategic move enables Kredivo to provide more comprehensive financial services, including BNPL offerings, by leveraging the bank's infrastructure and customer base.

These acquisitions indicate a strategic focus on integrating banking capabilities within BNPL services, allowing these companies to offer more robust financial solutions and improve their competitive positioning in the rapidly growing Indonesian market.

Regulatory Changes

Limitations on Akulaku: In October 2023, the Financial Services Authority (OJK) placed restrictions on Akulaku, a major BNPL provider in Indonesia. This action was taken due to Akulaku's failure to comply with supervisory measures requested by the OJK. The restrictions prevent Akulaku from engaging in new BNPL activities or offering financing to existing customers, emphasizing the regulator's focus on ensuring compliance and protecting consumers from potential over-indebtedness.

Ongoing Regulatory Discussions: The OJK has been actively discussing the need for a comprehensive regulatory framework for the BNPL sector. This includes addressing concerns about consumer protection, transparency in pricing, and responsible lending practices. The aim is to create a balanced environment that fosters innovation while safeguarding consumers from excessive debt.

Focus on Debt Prevention: The OJK's actions reflect a broader initiative to prevent consumers from falling into debt traps associated with BNPL schemes. As the adoption of BNPL services grows, regulatory bodies are increasingly concerned about the potential for consumers to accumulate unsustainable debt levels.

These developments indicate a proactive approach by Indonesian regulators to establish a framework that supports the growth of the BNPL sector while prioritizing consumer protection and financial stability.

Indonesia's BNPL sector is rapidly evolving with significant product launches and strategic partnerships, such as GoTo and TikTok's GoPay Later and Traveloka's Pay Later card with Bank BRI. Key mergers, like Kredivo's acquisition of Bank Bisnis and Akulaku's purchase of Bank Neo Commerce, are enhancing service offerings. However, regulatory challenges persist, with the OJK imposing restrictions on Akulaku and discussing comprehensive BNPL regulations to ensure consumer protection and financial stability.

The BNPL payment industry in Indonesia has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities. • Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020–2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.

• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.

• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.

• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.

• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in Indonesia. This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Indonesia through 55 tables and 71 charts. Below is a summary of key market segments:

Indonesia BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues

• Buy Now Pay Later Share by Revenue Segments

• Buy Now Pay Later Revenue by Merchant Commission

• Buy Now Pay Later Revenue by Missed Payment Fee Revenue

• Buy Now Pay Later Revenue by Pay Now & Other Income

Indonesia Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base

• Buy Now Pay Later Bad Debt

Indonesia BNPL by Purpose, 2020-2029

• Convenience – Short Term Loans

• Credit – Long Term Loans

Indonesia BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)

• Three-Party BNPL Offering

Indonesia BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System

• Closed Loop System

Indonesia BNPL by Distribution Model Analysis, 2020-2029

• Standalone

• Banks & Payment Service Providers

• Marketplaces

Indonesia Buy Now Pay Later Market Share Analysis by Key Players

Indonesia BNPL Analysis by Channel, 2020-2029

• Online Channel

• POS Channel

Indonesia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category

• Share by Age Group

• Share by Income

• Share by Gender

• Adoption Rationale

• Average Monthly Expense segments :Klarna

Akulaku

Home Credit

PayLater by Shopee

KoinWorks

Gojek's GoPayLater

Julo

Tunaiku