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October 6, 2021

Indonesia’s Paper.id unveils BNPL offering for small to medium businesses

By Shalini mani

Indonesian B2B invoicing startup Paper.id has launched a Buy Now, Pay Later (BNPL) offering for small to medium (SME) businesses in the country.

Free Report
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What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

In addition, the firm is introducing a new feature called Get Paid Faster (GPF) to allow merchants to tap BNPL advantages even if customers opt out of financing.

Paper.id stated that these features will provide ‘desperately needed’ financing to over 200,000 SMEs in the country.

Suppliers can utilise the GPF feature by invoicing their buyers through Paper.id’s invoicing platform.

After submitting validated invoice by customers, they can avail instant payment from Paper.id ahead of its supposed payment term with a small fee.

The firm said that the buyer can similarly use the GPF feature to pay their suppliers by submitting a purchase invoice.

Furthermore, buyers will be able to utilise the BNPL feature to set a payment plan to extend payment by 30 days.

Paper.id co-founder Yosia Sugialam commented: “Based on our own internal data, most SME B2B buyers only have the option of paying their suppliers through cash or bank transfer.

“We unlock more options for the buyer with a BNPL and digital payment options, including credit card, regardless if the supplier actually provides payment terms or not.”

Helping Indonesian SMEs come out of pandemic

The Covid-19 pandemic forced several SMEs in Indonesia to constrict their business.

As the pandemic situation in the country begins to stabilise, these merchants are faced with cash flow constraints and low payment liquidity.

Paper.id co-founder and CEO Jeremy Limman said: “The current state of the pandemic provides a unique opportunity for us to further help the SMEs back in business and bring more options for them to alleviate their cashflow crunch both operationally and financially. These two solutions have seen tremendous growth in the past few months.”

Earlier this year, Paper.id secured the backing of Buana Sejahtera Group to bolster its financing capabilities and tap into a more traditional supply chain.

Free Report
img

What does the future hold for BNPL market?

The global Buy Now Pay Later (BNPL) market is estimated at a massive $120 million in 2021 – representing just less than 3% of the global ecommerce market. Yet the user-base is massive, with leading provider, Klarna, alone reportedly having 87 million users in 2021. This market is only expected to grow, with established companies like Apple and Goldman Sachs moving into the BNPL sector in bids to capitalize on this trend. To help you make the most of this growing market, GlobalData’s Buy Now Pay Later in 2022 and Beyond report provides detailed insight into the BNPL sector. This report:
  • Discusses the disruptive potential of the BNPL sector on the payments industry
  • Identifies the leading companies that are driving sector growth and the benefits this new payments solution provides to both merchants and consumers
  • Analyzes the consumer’s risk of using BNPL loans and government attempts at introducing regulations to the sector
  • Uncovers the main risks that consumers expose themselves to when borrowing with BNPL
Download this free report to get to know where this developing market is headed, and how you can reshape your strategies.
by GlobalData
Enter your details here to receive your free Report.

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