‘Save now, buy later’ struggles to find product-market fit

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IN FOCUS

In today’s newsletter, we look at:

• A new crop of startups encouraging consumers to save up for future purchases
• A written warning served to lending platform Investree by Indonesia’s Financial Services Authority
• The Vietnamese company taking advantage of a growing digital gifting market

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Hi there,

In the face of adversity, creativity is the ultimate weapon. This was an invaluable piece of advice I received from a favorite middle school teacher that I’ll always carry with me.

The past year or so proved challenging for many tech players, including buy now, pay later (BNPL) startups. In the face of this, one firm demonstrated creativity by pivoting to a new model termed “save now, buy later” (SNBL) in 2022, though the company ultimately ceased operations a year later.

SNBL firms like Split in Malaysia and Multipl in India encourage customers to set savings goals and purchase only when they have saved enough.

This addresses some of the concerns associated with BNPL practices, which can lead to debt if not managed well, or encourage impulsive spending.

However, getting people to save and merchants to come on board turns out to be more challenging than one thinks, as my colleague Melissa highlights in this week’s Big Story.

Meanwhile, for this week’s Hot Take, I delve into the recent challenges faced by Indonesian peer-to-peer lender Investree and explore its wider implications for the lending industry in the country.

— Budi

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THE BIG STORY

Why ‘save now, buy later’ apps need to look beyond just savings to survive

While saving up to purchase an item is the responsible thing to do, nothing beats the rush of some good ol’ instant gratification.

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THE HOT TAKE

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NEWS YOU SHOULD KNOW

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FYI

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