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 - Q1 2025 Update

Key Insights

Financial Inclusion Driving BNPL Growth

• A key factor in Indonesia's BNPL market is financial inclusion. With over 50% of Indonesians unbanked, BNPL is an alternative credit source for first-time borrowers who lack access to credit cards or loans.
• Providers like Kredivo have partnered with financial institutions to offer installment options with minimal credit checks. This collaboration aims to reach underbanked populations in rural areas. Many consumers rely on BNPL services to afford mid-sized purchases such as smartphones, home appliances, and motorbikes.

E-Commerce Expansion Fueling BNPL Demand

• Indonesia's e-commerce sector has grown significantly, with platforms like Shopee, Lazada, and Tokopedia seeing record transaction volumes in 2023. Major platforms have partnered with BNPL providers to offer flexible installment plans to cater to this demand.
• Kredivo partnered with Tokopedia to offer zero-interest BNPL options for major shopping events like Harbolnas (National Online Shopping Day).
• BNPL has become a key payment method for tech products, household goods, and other high-value purchases.

Integration of BNPL with Super Apps and Fintech Platforms

• Indonesia’s super apps like Gojek and Grab have incorporated BNPL features to enhance their payment ecosystems. BNPL services now cover ride-hailing, food delivery, and financial services, providing users with seamless payment flexibility.
• Atome announced a partnership with Gojek, integrating BNPL options for ride and food delivery services, further boosting user engagement on the platform.
• High smartphone penetration and the popularity of super apps have made BNPL adoption more accessible to a wide range of users.

Offline Retail Expansion and Omnichannel Strategies

• BNPL adoption in offline retail has grown significantly, particularly in electronics, fashion, and automotive services. Retailers such as Electronic City and Erafone have partnered with BNPL providers to offer in-store installment plans.
• Akulaku launched a pilot program offering BNPL at major retail chains in Jakarta. Integrating BNPL with omnichannel shopping experiences is crucial as consumers continue to blend online and offline shopping habits.

Youth-Oriented Growth and Payment Flexibility

• BNPL adoption in Indonesia is highest among millennials and Gen Z, who favor flexible payment methods to manage consumer electronics, fashion, and travel expenses.
• Providers like Akulaku and Atome have introduced promotions targeted at younger demographics, including cashback offers during events like the 11.11 and 12.12 shopping festivals.
• Younger users appreciate BNPL services for their ability to spread payments without the need for traditional credit approval processes.

Sector Diversification: Travel, Healthcare, and Education

• As Indonesia’s travel industry recovers from the impact of COVID-19, BNPL services are being used to finance vacation packages and airline tickets. In April 2023, Garuda Indonesia partnered with Kredivo to offer BNPL options for domestic flights.
• Healthcare providers are also starting to adopt BNPL for elective procedures and wellness services, although adoption in this sector remains early.
• The education sector has seen increased BNPL adoption, with private institutions offering installment-based tuition payments for vocational training and short-term certification courses.

Economic Conditions and Impact on BNPL Usage

• Rising inflation and currency volatility in 2023 have increased demand for BNPL as a cash flow management tool. Consumers are using installment plans to spread payments for essential and discretionary purchases.
• Consumers typically use BNPL as a flexible alternative to traditional loans, helping them maintain their purchasing power during economic uncertainty.
• Providers offering low or no-interest options have gained a competitive edge, particularly in high-growth urban centers like Jakarta, Bandung, and Surabaya.

Competitive Landscape and Regulatory Developments

Current State of the BNPL Market

• High E-commerce Integration: BNPL services are widely embedded in leading platforms like Tokopedia, Shopee, and Bukalapak. Providers are driving adoption by offering interest-free installments and flexible repayment plans, especially for electronics, fashion, and household products.
• Targeting the Underbanked Population: With limited access to traditional credit products, Indonesia's large underbanked population relies on BNPL as an alternative financial service. Providers are tailoring their offerings to first-time borrowers, many of whom are informal sector workers or small business owners.
• Adoption Across Urban and Rural Areas: While urban centers remain key growth areas, BNPL providers are increasingly expanding their reach to semi-urban and rural regions. Partnerships with logistics and retail chains support this strategy to offer omnichannel shopping experiences.

Key Players and New Entrants

• Key Players: Domestic providers Akulaku and Kredivo lead the market by offering tailored BNPL solutions for online and offline purchases. Meanwhile, Shopee PayLater and Atome have established strong positions through partnerships with major e-commerce platforms and retailers.
• New Entrants: Regional and global fintech providers like GoPayLater (Gojek) are entering the BNPL market by leveraging their presence in Indonesia's broader digital payments ecosystem. These players aim to compete by integrating BNPL services into everyday transactions like ride-hailing and food delivery.

Recent Launches, Mergers, and Acquisitions

• Kredivo expanded its collaboration with Tokopedia, offering enhanced BNPL features such as instant credit approval and personalized installment plans. This partnership aims to boost customer engagement and retention across the platform.
• Akulaku launched a BNPL solution for healthcare services, partnering with hospitals and clinics to provide installment payment options for medical expenses.

Anticipated Competitive Dynamics Over the Next 2-4 Years

• Rural Expansion and Financial Inclusion: BNPL providers will likely target rural and semi-urban regions to capture underbanked consumers. Partnerships with local retailers, logistics providers, and fintech platforms will support this geographic expansion.
• Technology Investments: Providers must invest in AI and machine learning to enhance credit risk assessment, fraud detection, and customer personalization. These advancements will be critical in improving service efficiency and consumer trust.
• Integration with Super Apps: As competition intensifies, BNPL services will likely become further integrated into Indonesia's super apps, such as Gojek and Grab. This will provide consumers seamless access to installment plans for various services, from ride-hailing to bill payments.

Regulatory Changes

• Sandbox Initiative for BNPL: The OJK introduced a regulatory sandbox to foster fintech innovation while ensuring compliance with consumer protection laws. This initiative allows BNPL providers to test new business models under government supervision.
• Enhanced Consumer Protection Measures: Authorities have increased oversight of credit risk management and data privacy in the fintech sector. Providers must now implement stricter compliance measures to maintain market stability and protect consumer data, particularly for first-time borrowers.

Scope

Indonesia BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Indonesia Buy Now Pay Later Revenue Analysis

• 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

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Indonesia BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

Indonesia BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Indonesia BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

Indonesia BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Indonesia Buy Now Pay Later Market Share Analysis by Key Players

Indonesia BNPL Analysis by Channel

• Online Channel
• POS Channel

Indonesia Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• 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

• 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

• 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

• 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

• 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

• 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

• 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
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in Indonesia: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in Indonesia. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.