It’s Time to Activate Payments with Credit Cards and Pay Later Installments in Your Business

Maryanto Saputra on Sep 16, 2021 in Information

Credit cards were once only enjoyed by people with high-income lifestyles. With alluring benefits and increasingly easier credit card application requirements, this payment instrument is now easier for various groups of people to own and become an inseparable part of today’s life. According to data from Bank Indonesia in February 2020, it states that there are 17.6 million active credit cards, where 1 person usually has 2-3 credit cards.

Over time, with the technological advancement, the phenomenon of the “buy now, pay later” (BNPL) concept or better known as Paylater in Indonesia is becoming a new favorite payment method in the public. With registration requirements that are easier and more affordable for all people, installment payments without a credit card are predicted to be increasingly in demand in 2021. In fact, according to a study from Coherent Market Insights (link to ttps://, the global Paylater market is expected to grow from 5 million USD in 2019, to 33.6 million USD in 2027, with an average annual growth rate (CAGR) of more than 21.2%. with an average annual growth rate (CAGR) of more than 20% to 33.6 million USD.

Wow, that’s a fantastic number, isn’t it?

Credit cards and Paylater offer customers to buy goods not necessarily in full payment but can be done in installments. This is considered to make it easier for customers to manage their monthly finances. Especially in the period before holidays, where there are a lot of additional expenses in that month. The use of credit cards and paylaters also has various benefits. Starting from the easiness in use to various interesting promos and discounts.

However, it turns out that the benefits offered by credit cards and paylaters not only apply to customers, but also to business owners. What are the benefits? Let’s talk about it further.

1. Your products are more affordable by various segments of society

We often hesitate to buy goods at relatively high prices because we cannot pay in full. You have to save 3 months first, even though you need the product right now. By offering payment methods for installments and credit cards, your products will become more affordable for buyers.

Some financial services provide special conditions for a loan like minimum salary or goods guarantee. However, the paylater only requires an Indonesian ID card to register. With the easy registration offered by installment technology without a credit card, this makes the transaction process at your online store faster.

That way, you don’t have to worry if you have to sell products at a fairly expensive price. You simply just have to market your product and customers are free to choose the payment method according to their ability to pay. The more customers have access to buy your products, the more your sales will increase!

2. A good amount of offers

Paylater facilities are still relatively new among Indonesians. Therefore, to market and socialize Paylater products, Paylater service providers such as ShopeePayLater or Indodana provide many promotions to attract potential users.

Various offers can attract customers to buy your products. Nowadays, paylater and credit cards providers are incessantly promoting. Some promos that often offered on the use of credit cards and paylaters are cashback and discounts. So, make sure your online store activates this feature!

3. Sellers will still get full payments

Due date to pay installments is also another advantage of paylaters and credit cards. Customers are free to choose the installment payment due date in accordance with the terms and conditions of the paylater or credit card provider institutions. That way, customers will be encouraged to buy your product and pay according to their financial ability.

Even though it is the buyer who chooses the amount and the due date for the payment, as a seller, you will still receive a full payment from selling your product. This is because there are third parties (banks or credit institutions) that guarantee and facilitate your transactions. So you don’t have to bother dividing payments or feel afraid that customers will not complete the payment that is his obligation. You don’t have to worry about anything!

Although credit card facilities and PayLater payments can increase purchase rate, we have to use this payment method with responsibility. Some things that should be considered before activating a credit card and installments without a credit card include:

  • Get used to using your credit card and paylater balance for needs, not an impulsive spending.
  • Consider other installments / mortgages that you currently have before deciding to open a payment limit.
  • Keep track of your expenses and double-check before adding other expenses to your paylater and credit card.
  • For recreational spending, make sure you have enough savings to pay for it in full. The installment payment method is good to use to maintain your cash flow, but you are not advised to buy beyond your financial ability for tertiary things!

Now you know that activating the payment method by credit card and paylater turns out to has a lot of benefits. To activate credit card and installment payment methods at your online store, use a payment gateway for your business. Payment gateways allow your business to accept payments from various banks, virtual accounts, credit cards, convenience stores, or even with the installment method without a credit card.

With a payment gateway, you can directly connect with a bank or installment service provider without a credit card. The payment gateway system is also equipped with a built in fraud detection system. So you don’t have to worry because your business transactions are more secure and easier for customers. Also, check here for more information about the security of accepting credit card transactions online (link to blog post 4)

Make sure the payment gateway provider you choose has been proven to be safe, PCI-DSS certified and has official legality from Bank Indonesia like Duitku. Let Duitku take care of your online transactions!

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