Indonesian B2B invoicing firm launches BNPL feature for SMEs

Indonesia-based Paper.id, a business-to-business (B2B) invoicing firm, has launched a buy now, pay later (BNPL) feature to help small businesses recover from the effects of the Covid-19 pandemic.

(From left) Paper.id CEO and co-founder Jeremy Limman, CTO & co-founder Yosia Sugialam, and COO Anthony Huang / Photo credit: Paper.id

The feature lets small and medium-sized enterprises (SMEs) choose an installment payment method if they require a term extension for their purchases. Instead of paying their suppliers immediately, SMEs can set a plan to extend their payments by 30 days.

For customers that opt-out of financing, suppliers can still take advantage of BNPL through a new feature called Get Paid Faster to instantly receive payment from Paper.id ahead of its supposed payment term with a small fee.

“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,” said Yosia Sugialam, CTO and co-founder of Paper.id.

The startup also said it recently brought in strategic investor Buana Sejahtera Group, which owns companies in the finance, logistics, and hospitality sectors, to expand its financing capabilities.

The news comes after Paper.id raised an undisclosed amount of funding in a series A round from Golden Gate Ventures, a Singapore-based venture capital fund, and Modalku, an Indonesia-based peer-to-peer lending platform.