GoTo launches BNPL service on TikTok’s ShopTokopedia

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Indonesian digital ecosystem GoTo Group, in a tie-up with TikTok, has launched its buy now, pay later service on the social media firm’s ShopTokopedia platform.

The introduction of GoPay Later, which expands the reach of flexible payment options in Indonesia, builds on the existing partnership between the two companies.

The collaboration aims to grow Indonesia’s digital economy, where more than 90 million people do not have a bank account, as The Business Times previously reported.

A significant proportion of the country’s population lacks access to secure and responsible financial services, GoTo said – a gap that the company’s financial arm plans to fill.

The service, which uses an installment payment method, has a credit limit of up to 10 million rupiah (US$614), determined by risk-based pricing. It has flexible tenor options, and there is no minimum transaction required to avail of the service.

“GoPay Later complements the availability of GoPay as a convenient payment method on TikTok’s ShopTokopedia, providing users with a wider variety of financial services on the ShopTokopedia platform,” said GoTo COO Hans Patuwo.

The company will also continue to “strictly follow responsible lending practices,” he added.

GoTo, which is listed on the Indonesian bourse, said that its consumer lending business “significantly contributed to strong top-line growth” for the first quarter of this year.

In April, the ecommerce firm said that it narrowed first-quarter losses to roughly US$25.8 million, while gross revenue for the quarter grew 18% year on year to about US$258 million.

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Currency converted from rupiah to US dollar: US$1 = 16,277.55 rupiah.

This story was republished with permission from The Business Times. It was moderately edited to reflect Tech in Asia’s editorial guidelines.