The "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 2024 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 16.3% on an annual basis to reach US$ 7.57 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.7% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$ 6.51 billion in 2023 to reach US$ 12.59 billion by 2029.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics. It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The rising inflation, coupled with the decline in disposable income, has led millions of Indonesians towards buy now pay later schemes over the last 12 months. The publisher expects the adoption to further grow in the Indonesian market, supporting industry growth over the medium term. However, the number of consumers falling into a debt trap is also rising at a rapid pace.

The booming e-commerce market and a large unbanked population are among the leading growth drivers for the BNPL market. These factors will continue to support the market growth in 2024. In Southeast Asia, Indonesia is expected to lead the regional growth of the BNPL industry over the next two years. Overall, the publisher maintains a robust growth outlook for the industry in Indonesia from the short to medium-term perspective.

Indonesia will lead the growth of the regional buy now pay later market over the next two years

In Southeast Asia, more and more consumers are getting online and using smartphones. This, coupled with the region's growing online shopping market and the fact that many do not have access to traditional bank accounts, has created the perfect growth environment for alternative payment solution providers, like BNPL firms.

While the sector is poised to grow across the region, Indonesia is expected to lead the industry growth over the next two years. According to a report from International Data Corporate, Indonesia will make up to 58% of all the buy now pay later spends on e-commerce platforms by 2025.

BNPL firms are projected to raise funding rounds to scale their business and drive growth in 2024

Adoption of buy now pay later schemes has surged significantly over the last 12 months in Indonesia, and this trend is projected to continue further over the medium term across the country. Consequently, providers are planning to scale their product offerings, while targeting higher growth in the sector.

Finture and Kredivo are among the players that have raised venture capital and private equity funding in the Indonesian BNPL market in 2023. Finture, for instance, raised US$20 million in a funding round in July 2023. The investment was led by Chinese firm XVC. Kredivo, on the other hand, raised US$270 million in a funding round led by Japanese firm Mizuho Bank. The firm is planning to use the capital to better serve the credit demand among underbanked consumers.

Going forward, in 2024, the publisher expects more such BNPL providers to raise venture capital and private equity funding in Indonesia. This will support innovation and a competitive landscape in the sector, driving market growth from the short to medium-term perspective.

The Financial Services Authority has imposed restrictions on Akulaku's BNPL operations in Indonesia

The Financial Services Authority (OJK), in October 2023, placed limitations on the domestic BNPL firm Akulaku. This action comes as a response to Akulaku's failure to comply with supervisory measures requested by the OJK. As a result of this, OJK has restricted the distribution of financing through the BNPL scheme.

Akulaku is not allowed to engage in new BNPL activities or offer BNPL financing to existing customers. The firm is also prohibited from distributing financing through channeling or joint financing schemes. The OJK has instructed Akulaku to follow a corrective action plan that was submitted to the regulator on October 5, 2023.

The BNPL payment industry in Indonesia has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

Key Attributes:

Scope

Indonesia BNPL Market Size and Spending Pattern, 2020-2029

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

Indonesia Buy Now Pay Later Revenue Analysis, 2020-2029

• 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, 2020-2029

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

Indonesia BNPL by Purpose, 2020-2029

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

Indonesia BNPL by Business Model, 2020-2029

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

Indonesia BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Indonesia BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Indonesia Buy Now Pay Later Market Share Analysis by Key Players

Indonesia BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Indonesia Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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
• Average Monthly Expense segments

For more information about this report visit https://www.researchandmarkets.com/r/9ugwpv

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