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Declining Purchasing Power, Great Opportunity for Paylater | merdeka.com


Merdeka.com – Kredivo’s annual research and Katadata Insight Center record the behavior of Indonesian c-commerce consumers. According to the data, the use of Paylater in e-commerce increased by 38 percent in 2022 from the previous year, which was 28 percent.

In addition, 50 percent of consumers have used Paylater more than 1 year and 49 percent of consumers use Paylater at least once a month. Its use is even more inclusive in terms of area coverage, user age groups, and product categories for daily needs.

The factor of the duration of the approval process, transaction experience, and application requirements are Paylater’s advantages that are considered the most satisfying with more than 96 percent of consumers admitting this.

“The current economic conditions experienced by the public will affect the purchasing power of the people which is decreasing due to the increase in the inflation rate. In the end, public consumption will slow down. This phenomenon is not only a challenge for the community, but can also be a great opportunity for the Paylater industry,” said INDEF Economist Nailul Huda.

He continued, Paylater’s working principle, which allows people to buy necessities by paying regularly and an easy approval process, will be a stimulus to people’s purchasing power.

“If people’s consumption patterns can still be maintained, then the wheels of the economy will still be able to move,” he explained.

Meanwhile, Kredivo’s VP of Marketing & Communications, Indina Andamari said that referring to Kredivo’s latest research with the Katadata Insights Center, the majority of people choose Paylater because of payment flexibility, the registration process is quick and easy, and the guarantee of supervision from the OJK.

“Meanwhile, from an industry perspective, Paylater’s growth is driven by the gap in credit access in Indonesia, the rapid adoption of digital in various sectors, the popularity of e-commerce, and Paylater’s ability to reach the underbanked community to get access to credit,” he said.



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