Paylater Transactions Soar 100%, Tokopedia Collaborates with Indodana
The e-commerce company, Tokopedia, recorded an increase in transactions using pay-later or paylater services 100% or twice during the corona pandemic. To meet demand, this unicorn is also collaborating with a financial technology startup (fintech lending) Indodana.
Tokopedia Marina Ivana Tjuanda’s Senior Lead Business Development (Fintech) assessed that this increase shows that paylaters are a necessity during the Covid-19 pandemic. “With strategic collaboration, it can be easier to meet demand,” he said during a virtual press conference, Friday (11/12).
So far, Tokopedia has collaborated with various fintech such as Taralite and Kredivo for paylater services. Taralite was acquired by OVO in March 2019. Now, the company is partnering with Indodana to provide loans of up to IDR 25 million. This collaboration was carried out when the income of some people decreased due to the outbreak of the coronavirus.
The Central Statistics Agency (BPS) noted that the number of unemployed increased by 2.67 million to 9.77 million people as of August. As a result, the open unemployment rate (TPT) rose from 4.99% in February to 7.07%. This also affects people’s purchasing power.
AI Technology is Used to Mitigate Bad Credit
BPS also noted that household consumption growth contracted by 4.04% on an annual basis (year on year / yoy) in the third quarter. However, it is still better than the previous quarter at negative 5.52%. Marina assessed that the community needed funding to meet their daily needs.
“The paylater feature can be an alternative financial solution during a pandemic,” he said. Indodana Vice President of Business and Operations Jerry Anson said the company relies on artificial intelligence (AI) based risk management technology to mitigate bad credit.
“The current situation is uncertain. We understand that many people are affected, so they are given convenience with a paylater,” he said. On the one hand, paylater is mostly used for consumptive purposes, such as buying goods in e-commerce. In contrast to productive loans which aim for working or business capital.
Even so, Jerry is optimistic that he can mitigate the risk of default by implementing a number of strategies. One of them, “we provide credit bill relief,” he said. Indodana has also distributed loans of more than IDR 1 trillion. “Apart from consumptive use such as paylater, we are targeting the productive segment to comply with the regulations of the Financial Services Authority (OJK),” he said.
Indodana Supports the Paylater Feature on Tokopedia
Indodana’s fintech lending and paylater platform collaborated with Tokopedia, an Indonesian technology company, to release the digital payment feature ‘Indodana PayLater’ as an alternative solution for payment methods when shopping on Tokopedia.
This new feature is a form of corporate strategic cooperation with the aim of improving services, ease of transactions and digital economic equity while encouraging financial inclusion for the Indonesian people.
“We are grateful and happy that Tokopedia as a technology company with the leading marketplace in Indonesia has officially become an integrated merchant partner with Indodana PayLater,” said Jerry Anson, Vice President of Business & Operations at Indodana.
“We hope that the concept of ‘buy now, pay later’ will make it easier for Indonesians, especially the under-banked segment, which is still not reached by formal financial institutions, to meet their daily needs,” he continued.
Indodana PayLater itself is an OJK-licensed digital payment system that is supported by cutting-edge risk management based on Artificial Intelligence, an ISO 27001 certified security system, and a collection process that complies with OJK standards. To date, Indodana PayLater is available as a payment method at more than 150 merchants in Indonesia.
Indodana PayLater can now be used by more than 100 million active monthly Tokopedia users to meet their daily needs (from food & beverage, beauty, electronics, home & living, mobile / tablet, to automotive products) through a flexible payment system and installment options which varies.