Paylater services continue to surge in Indonesia, offering consumers—and even business owners, a short-term financial solution amid weakening purchasing power. However, experts warn that the “buy now, pay later” model carries risks, from defaults to rising consumer debt.
Data from the Financial Services Authority (OJK) shows that Indonesians’ debt through the buy now, pay later (BNPL) or paylater scheme in the banking sector reached IDR 22.99 trillion in June 2025, growing 29.75% year-on-year (YoY). Meanwhile, public debt from paylater in finance companies in June 2025 reached IDR 8.56 trillion—an increase of 56.26%.
“Paylater has become increasingly popular in recent years, especially among the younger generation. This is because paylater offers convenience and flexibility in shopping,” said Aviliani, Senior Economist at the Institute for Development of Economics & Finance (Indef) on Thursday (August 14, 2025).
But she cautioned that easy access also encourages overspending, while failure to pay on time exposes users to steep penalties and interest.
Entjik Djafar, chairman of the Indonesian Joint Funding Fintech Association (AFPI), said that paylater's convenience makes it a short-term solution for the public’s funding needs.
“Paylater is indeed popular because the registration process is relatively easy, and payment can be made later,” Entjik told SUAR on August 13, 2025.
Citing the 2024 research by Kredivo and Katadata Insight Center titled Paylater User Behavior Report 2024, the majority of Kredivo users use paylater for truly essential needs, such as grocery shopping (66.9%) and children’s and household needs (10.1%).
This means that, if managed properly, paylater can be a smart tool for families to manage their finances. That’s why it’s crucial for families to continuously improve their understanding of digital finance.
An increase in paylater usage also occurs during certain festive periods, such as during the recent Ramadan. Kredivo’s SVP of Marketing & Communications, Indina Andamari, stated that in line with the trend of increased consumer spending during Ramadan, Kredivo has also recorded a significant rise in transactions during this period over the past few years. This growth has gone hand in hand with the wider adoption of paylater services.
During Ramadan 2024, Kredivo users’ offline shopping transactions increased up to threefold compared to Ramadan 2023, with the transaction peak occurring in the second week of Ramadan. Kredivo usage outside Greater Jakarta (Jabodetabek) also grew significantly, recording a 25% increase during the same period.
In addition, the number of transactions outside Java Island surged by as much as 37%. Throughout Ramadan 2024, the most purchased product categories included phone credit & vouchers, health & beauty, and fashion. In terms of user profile, 71% of transactions were made by users aged 20 to 35 years.
Opportunities for the Banking Sector
OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae, stated that BNPL or paylater loans contribute 0.28% of the total national banking credit. “The number of banking paylater accounts has risen significantly to 26.96 million users,” Dian said at an OJK press conference last week (August 4).
Dian noted that BNPL lending continues to show annual growth trends, which must be monitored to prevent the risk of bad loans. Overall, OJK reported that banking credit growth in June 2025 was recorded at only 7.77% year-on-year, reaching around IDR 8,059.79 trillion.
By type of use, investment credit posted the highest growth at 12.53%, followed by consumer credit at 8.49%. Meanwhile, working capital loans grew by 4.45% (YoY).
“In terms of ownership, domestically owned national private banks posted the highest growth, at 10.78% (YoY),” Dian revealed.
Based on debtor categories, Dian said corporate loans grew by 10.78%, while MSME loans saw modest growth of only 2.18%, amid banking efforts focused on restoring the credit quality of MSMEs.
PT Bank Central Asia Tbk (BCA) reported that its buy now, pay later (BNPL) or BCA paylater service has grown significantly since its launch in October 2023. BCA EVP of Transaction Banking Business Development, I Ketut Alam Wangsawijaya, stated that the outstanding value of BCA paylater loans reached IDR 339 billion as of January 31, 2025—an increase of 148% year-on-year (YoY).
“This is quite an encouraging development considering that paylater has only been around for just over a year since its launch in October 2023,” he said.
Meanwhile, the number of BCA paylater users has reached 150,000, up from the previous figure of 100,000 users.
Alam noted that the non-performing loan (NPL) ratio of BCA paylater also remains well under control, although he did not provide exact figures. “We can’t yet disclose the exact credit quality value, but it’s still at a level we consider manageable,” he explained.
According to BCA’s official website, BCA paylater offers a credit limit of up to IDR 20 million with a flat interest rate of up to 2% per month for terms of 1 month, 3 months, 6 months, or 12 months.