Indonesia’s Traveloka Offers BNPL to Underbanked

Traveloka, Indonesia’s travel startup turned super app, is taking a further step into the buy now, pay later (BNPL) arena.

The company on Monday (Sept. 20) announced the launch of its PayLater “Virtual Card Number,” which allows customers to use BNPL on eCommerce platforms outside of its network. Just like a regular credit card, the virtual card comes with a 16-digit number, CVV code and expiration date.

Traveloka, which says it pioneered the PayLater product in Indonesia, wants this new offering to open the door to eCommerce to unbanked and underbanked people who may not be able to get credit cards.

“A goal of our financial services offering has always been to advance financial inclusion, starting with our home market, Indonesia,” said Caesar Indra, president, Traveloka. “Our new Traveloka PayLater ‘Virtual Card Number’ is a natural extension of our PayLater offering, which has already enabled millions of our users to access credit and fulfill their lifestyle aspirations.”

The virtual card number lets customers use their PayLater credit to make online transactions with the option of installment payments on several eCommerce platforms, including Shopee, Lazada, JD.ID, Bukalapak and Tokopedia.

Traveloka says it has seen its number of users increase 7.5 times since launching PayLater in 2018. The new virtual card number method will be available only to select PayLater users in Indonesia at launch, with usage limits based on their PayLater credit limits. The service is expected to expand to more users at a later date.

Read more: Traveloka Could Go Public via SPAC at $5B Valuation

Earlier this year, reports surfaced that Traveloka was in talks to go public via a special-purpose acquisition company (SPAC) that would value the company at $5 billion. The deal would have seen Traveloka merge with Bridgetown Holdings Ltd., a SPAC backed by billionaires Peter Thiel and Richard Li. However, the company decided to put the deal on hold earlier this month, according to multiple news reports.

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