Indonesian travel unicorn Traveloka has formed a strategic partnership with Bank Negara Indonesia (BNI), one of the country’s largest state-owned banks, for a PayLater service on Traveloka’s platform.
With this new partnership, Traveloka will able to further develop its PayLater service and provide credit access to more users, especially underbanked customers.
Traveloka’s PayLater is connected to BNI Flex’s collateral-free loan products. This way, PayLater users automatically become BNI customers.
“This partnership will further grow BNI’s consumer credit access to Traveloka PayLater’s users. The collaboration marks BNI’s commitment to supporting Traveloka PayLater in achieving a potential loan disbursement of up to IDR 6 Trillion (USD 439 million) in 2020,” said BNI’s consumer business director Anggoro Eko Cahyo in an official statement.
The PayLater service allows users to shop or make transactions now, and make repayments over time. Although relatively new, this feature seems set to become increasingly popular, given that fintech and e-commerce platforms are competing to tap into this segment.
Traveloka launched its PayLater feature in 2018. Its PayLater’s user numbers have increased more than ten times while the number of transactions have increased five times since it was first introduced, Alvin Kumarga, senior vice president of financial products at Traveloka told KrASIA in a recent interview.
BNI is the second bank that has partnered with Traveloka PayLater. In October 2019, the firm collaborated with state lender Bank BRI to launch a PayLater Card. The card can be used in Indonesia and globally for both online and offline transactions, by leveraging the network of global payments company Visa.