Last May Ovo, Indonesian cashless payment partner of Grab, launched Ovo PayLater. The feature allows customers to make transactions in Grab and Tokopedia and paying it later. It is one step ahead of Go-Jek as it’s been available for offline store since its launch. As an answer, Go-Jek is taking its Go-Pay PayLater to another level.
The Indonesian decacorn startup announced that it is going to make the feature available even in offline stores. Go-Pay Paylater has been around since September last year, initially meant for Go-Food only. Then it expaned to other features such as Go-Ride and Go-Car.
How Go-Pay PayLater improves
Go-Jek stated that by July this year, the feature will be available to use at 30,000 offline stores. It will also be available in online merchants that accept Go-Pay.
However, not every Go-Jek user can use this feature. Go-Pay PayLater will only be available for users approved by Go-Jek’s credit analytics. The approval would be based on various data such as transaction history.
For this new feature, Go-Jek secured a partnership with local peer-to-peer lender, Findaya. This is to mitigate the credit risk of the PayLater. The company stated that users will have different credit limit and monthly fee. With the standard charge being IDR 25,000 ($2) and credit limit of IDR 500,000 ($40).
Nikkei Asian Review reported that this feature is only the beginning of a wider array of financial products for the company. The company is also preparing another feature for this evolution of financial technology.
It will allow users “who are unbanked and never had access to these financial services … [to] grow their credit history and move up the economic ladder. And that is what PayLater is about,” said Go-Pay CEO, Aldi Haryopratomo.
In 2018, Indonesia recorded a 210% year on year growth of e-money transaction. It counts up to IDR 2.9 billion, with Go-Pay and Ovo still dominating the market.
