Heaptalk, Jakarta — PT GoTo Gojek Tokopedia Tbk (GoTo) enhances its strategic partnership with TikTok by providing a Buy Now, Pay Later (BNPL) product, GoPay Later, on TikTok’s ShopTokopedia. This measure expands on the existing partnership between GoTo and TikTok, which aims to drive the growth of Indonesia’s digital economy through accessible financial services.
“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 while enabling both GoTo and TikTok to fuel business enhancement further,” GoTo Group’s COO, Hans Patuwo, affirmed.
With over 97 million unbanked adults, most of Indonesia’s population lacks access to secure and responsible financial services. Through its financial GoTo Financial, the company will continue to follow responsible and strictly accountable lending practices. These include maintaining transparent communication with consumers, providing loans based on users’ borrowing power, and equipping consumers with financial education to enable them to be responsible borrowers.
GoPay Later, as an installment payment method on Shop Tokopedia on the TikTok app, provides various benefits for users, spanning:
- A simplified credit process: To activate GoPay Later on ShopTokopedia, existing users need to complete a data verification process through facial recognition.
- Credit limit up to Rp10 million, determined by risk-based pricing
- Flexible tenor options of 1, 3, 6 to 12 months
In Q1 2024, GoTo Financial’s consumer lending business significantly contributed to robust online growth for the Group. Outstanding consumer loans, including BNPL and cash loan products, increased by 43% quarter-on-quarter and more than tripled year-on-year to US$165 million (Rp2.7 trillion) while maintaining a similar NPL ratio compared to the previous quarter.
GoTo and TikTok executed the transaction to take over Tokopedia shares. With the completion of this transaction, the Tokopedia and TikTok Shop businesses officially merged under Tokopedia, and TikTok holds the majority of shares.
Previously, TikTok invested over US$1.5 billion in GoTo to provide future funding required by the business without additional dilution to GoTo. The strategic partnership commenced with the Beli Lokal campaign last December, which has supported thousands of Indonesian merchants. This campaign has increased their sales by 125% during the campaign period.
