With BNI, Traveloka Aims Paylater Transaction to Reach IDR 6 Trillion This Year
Traveloka startups hook PT Bank Negara Indonesia (BNI) to expand the payment service market by installments (paylater). The online-based travel service provider company (OTA) is targeting, loans through the paylater feature to reach Rp 6 trillion this year.
President of Traveloka Group Operations, Henry Hendrawan, said that strategic cooperation is long term. This collaboration product aims to attract segments that do not yet have access to financial services (underbanked) in Indonesia.
“Hopefully, (the total paylater loan) can be distributed to one million paylater users this year,” Henry said during a press conference at Menara BNI Pejompongan, Jakarta, Wednesday (1/15).
Henry is optimistic that the target can be achieved. Therefore, travel and lifestyle needs are increasingly in demand by millennial consumers today.
On the one hand, he claims Traveloka’s paylater is superior to similar installment platforms. “We have the advantage of Know Your Customer (KYC), being able to identify users more deeply,” he said.
The system in Traveloka, he said, uses a National Identity Card (KTP) and passport. That way, this startup claims to be able to get to know Paylater users deeply.
Henry said the company also considered several things before confirming paylater users. “We do an analysis based on Traveloka behavior data to determine the level of risk of users, whether or not to be given credit,” he said.
Traveloka’s Senior Product Manager for Financial Services Bob Rahardjo added, users can register for paylater using a KTP, self-portrait, and fill in some data. “Then verification can be done in about five minutes,” he said.
Bob explained, paylater users on his platform have credit limits. “The lowest is Rp 1 million to Rp 50 million per customer,” he said.
Paylater Transactions are Increased Since First Launched
Traveloka’s Senior Vice President of Financial Products Alvin Kumarga said, the number of users of this service has also increased 10 times since it was launched. Only, companies are reluctant to mention the specific value of the transaction.
Based on Alvin’s notes, this service is widely used by users when plane ticket prices rise. “This non-cash payment was very helpful for customers to get tickets at the time (prices went up),” he said in Jakarta.
Then, this installment feature is also widely used to buy lifestyle products such as cinema tickets or food. He suspects, payment by this method is faster than banking services both mobile banking or credit cards.
“With a paylater, customers can pay later alias bills at the end of the month so it can speed-up payments. So there is in terms of their convenience,” he said.
Traveloka Paylater Users Automatically Become BNI Customers
The success of Traveloka Paylater then encouraged Traveloka to expand the service by collaborating with PT Bank Negara Indonesia (Persero) Tbk (BNI) to increase transaction volume.
The cooperation in terms of access to consumer credit was marked by the signing of the Cooperation Agreement between BNI Consumer Business Director, Anggoro Eko Cahyo, and President of Traveloka Group Operations, Henry Hendrawan, which took place Wednesday (1/15/2020) at the Pejompongan BNI Tower.
Anggoro Eko Cahyo said, “With Traveloka Paylater, anyone can plan a vacation trip and lifestyle support without the need to provide payment funds right away. For this reason, BNI is ready to support Traveloka Paylater, which in 2020 will work on the potential distribution of up to Rp 6 Trillion. “
Henry Hendrawan also said, “Traveloka PayLater allows users to get access to consumer credit that is suitable for booking airplane tickets, hotels, and other lifestyle needs at any time, so they don’t have to worry anymore about paying higher fees or finding criteria that are not according to their initial travel plans due to last-minute bookings made. “
BNI Consumer Product Management Division Head J Donny Bima Herjuno said, through this partnership, Traveloka’s paylater is connected to BNI Flex’s collateral-free loan products. So, paylater users automatically become BNI customers.