Get to Know the "Buy Now Pay Later" Trend and Its Opportunities for Businesses
Amid the rapid growth of online shopping in Indonesia, the Buy Now Pay Later (BNPL) method is becoming increasingly popular and in demand among many groups. With BNPL, consumers can buy goods first and pay later through installments with no interest or additional fees, as long as they meet the applicable terms and conditions.
According to data from Statista, the BNPL market has reached a value of 8.59 billion USD, with most purchases coming from the electronics, fashion, and travel categories. In addition, the Financial Services Authority (OJK) projects that the BNPL market will grow to 13.59 billion USD by 2030. With the widening use of BNPL, your business has a great opportunity to benefit by offering BNPL as a payment method.
Read also: 2025 Digital Payment Trends Every Business Owner Should Know
What are the BNPL opportunities for your business?
1. Increasing Conversion and Sales
Offering a BNPL option can attract many consumers who previously hesitated to buy because of limited funds. With BNPL, buyers have more flexibility when transacting, so your business's conversion and sales increase.
2. Reaching New Consumer Segments
BNPL gives you the chance to expand your customer base by reaching consumers who do not have a credit card or are reluctant to use one for online purchases. With attractive offers such as interest-free installments and an easy process, your business can attract more potential customers.
3. Easy Integration with Payment Service Providers
Getting access to offer BNPL services is not difficult either. Trusted payment service providers such as Midtrans are ready to help integrate BNPL payment methods, such as Kredivo, AkuLaku, GoPay Later, ShopeePay Later, and others, from various platforms with complete documentation and guides.
Although BNPL offers many opportunities, you also need to watch out for some of the challenges you may face when offering this payment method for your business.
What are the challenges of offering BNPL?
1. Risk of Default
Although BNPL makes things easier for consumers, the risk of default still needs attention. To reduce this risk, it is important that you work with a BNPL provider that has a strong and reliable credit verification system.
2. Fees from Payment Service Providers
BNPL providers usually charge a fee or commission for every transaction made through their platform. Therefore, you need to factor these costs into your product pricing strategy so it stays profitable.
3. Regulatory Compliance
BNPL in Indonesia is regulated by the Financial Services Authority (OJK). Make sure you and the consumers who transact comply with the applicable regulations so your business avoids the risk of sanctions or legal problems.
Read also: Preventing Fraud in the Digital Era: What Business Owners Need to Know
Midtrans provides a complete BNPL solution for you, not only as a payment method but also with various other advantages. These range from easy integration using SNAP, Core API, or other types of integration, so merchants can quickly add a BNPL option to their checkout process. In addition, Midtrans is equipped with a fraud detection system to reduce the risk of fraud, as well as access to analytics data and transaction history that help you manage your business.
Take advantage of this opportunity now by joining Midtrans and activating various payment methods that support BNPL for your business!