DUBLIN–(BUSINESS WIRE)–The “Indonesia Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics – Q3 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
According to the publisher, BNPL payments in the country are expected to grow by 68.4% on an annual basis to reach US$4,674.1 million in 2022.
Companies Mentioned
Medium to long term growth story of BNPL industry in Indonesia remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 32.5% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$2,776.0 million in 2021 to reach US$25,338.3 million by 2028.
In Indonesia, buy now pay later (BNPL) has helped to plug a significant lending gap. As of 2021, the credit card penetration rate is still relatively low at 6%, with approximately 65% of the 275 million strong population remaining unbanked. Over the last few years, as Indonesians have moved increasingly online, digital payment methods such as BNPL have gained strong traction among consumers.
The surge in BNPL usage is also assisted by the rising internet penetration rate, which stands at 68% in 2021. This is the highest across the Southeast Asian region and is expected to reach 79% by 2025. While the Indonesian government is expanding access to financial services, the majority of the consumers suffer from poor financial literacy. While poor financial literacy remains a problem, debt in the country remains under control, according to Financial Services Authority.
Over the next three to four years, the publisher expects the demand for BNPL services to remain strong among Indonesians. This means more growth potential for existing players while offering opportunities for new entrants in the segment from the short to medium-term perspective.
Firms are targeting the B2B sector to gain market share in the flourishing Indonesian BNPL industry
During the global pandemic outbreak, BNPL startups gained increasing traction among consumers, as the payment method gave them higher purchasing power and the convenience of splitting the purchase into several interest-free installments. With the B2C space becoming increasingly competitive, firms are now targeting the B2B sector to gain market share in the flourishing Indonesian BNPL sector and raise funding rounds to accelerate growth.
BNPL providers are strengthening their in-store network to capitalize on the projected growth in the credit market
As countries in the Southeast Asian markets continues to recover from post-Covid-19 lockdowns, the credit market is projected to grow at an exponential rate. To capitalize on this projected growth, BNPL providers are strengthening their in-store network in Indonesia.
BNPL firms are launching open-loop payments products to drive adoption and transaction volume in Indonesia
Globally, BNPL firms are entering into strategic partnerships with merchants to allow consumers to shop from their network of merchant partners. However, to further drive the adoption of their BNPL product and boost transaction volume, Indonesian BNPL firms are launching an open-loop payments product.
Scope
This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Indonesia. Below is a summary of key market segments:
Indonesia BNPL Market Size and Spending Pattern
Indonesia Buy Now Pay Later Operational KPIs
Indonesia Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
Indonesia Buy Now Pay Later in Retail Shopping: Market Size and Forecast
Indonesia Buy Now Pay Later in Home Improvement: Market Size and Forecast
Indonesia Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast
Indonesia Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast
Indonesia Buy Now Pay Later in Other: Market Size and Forecast
Indonesia Buy Now Pay Later Analysis by Consumer Attitude and Behaviour
For more information about this report visit https://www.researchandmarkets.com/r/iql650
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