SEA’s tech giants revel in lending boom, but major test looms

Nanda Sekar, a homemaker from the Indonesian city of Bogor, is a frequent user of BNPL services on platforms like Shopee, Gojek, and Tiket. Doing so lets her manage expenses so they “don’t pile up.”

But there’s also the discounts – since platforms are still focused on growth, using BNPL can be cheaper than paying in full. Sekar uses it not just for one-off big purchases like plane tickets, but also for monthly necessities.

Shopee’s office in Jakarta / Photo credit: jafriyalbule / Shutterstock

In Indonesia, there are many users like Sekar. Outstanding BNPL debt in the multifinance sector – which includes fintech and non-fintech providers – reached 8.2 trillion rupiah (US$485 million) as of February, up 59% year on year (YoY).

This has driven a lending boom for Southeast Asia’s tech giants.

Sea Group’s fintech arm, SeaMoney, saw its loan book for Q4 2024 surpass US$5 billion, which was a 60% YoY growth. Similarly, Grab recorded a 36% YoY revenue increase in Q1 2025, while GoTo Financial – whose loan book grew 108% YoY – achieved positive adjusted EBITDA for the second consecutive quarter.

But a big test may be approaching.

Across many markets, including in Southeast Asia, ballooning consumer debt and increased buy now, pay later (BNPL) usage is colliding with a global economic slowdown. That has raised concerns about a debt trap, and not just for the younger consumers that BNPL platforms typically target.

“A macro wobble, say gig-worker layoffs or a spike in living costs, would test just how thin borrowers’ safety nets really are,” Singapore-based industry analyst Zennon Kapron tells Tech in Asia.

Alarm bells ringing?

In the past two years, BNPL has seen users shift from the younger generation to older age groups. Fintech firm Kredivo, for instance, recorded consistent YoY growth in users over 36 years old, reaching 39% as of September 2024.

The company also noted that transactions during this year’s Ramadan period were dominated by users who were 30 and above.

GoTo Financial has also launched a standalone GoPay app focused on fintech features / Photo credit: GoTo

This rise comes as a wave of layoffs have hit several Indonesian industries: According to data from Indonesia’s Ministry of Manpower, more than 18,000 people were laid off in the first two months of 2025 alone.

Age isn’t just a number