JAKARTADAILY.ID - In recent years, the concept of "Buy Now, Pay Later" (BNPL) has gained traction. BNPL, in essence, promotes easy credit that is directly linked to the consumption of goods or services.
It comes in a variety of forms, ranging from the most basic small-ticket ones made available by fintech companies on consumer checkout portals and marketplaces to the most complex large-ticket ones offered by banks.
The consumer market has driven the majority of global growth in BNPL over the last few years, as has retail consumption and retail lending. Consumer BNPL is a viable substitute to credit cards, particularly for the large segment of consumers who lack a credit history and are thus unable to acquire credit from financial institutions.
As it continues to expand rapidly in consumer finance, it was only a matter of time before BNPL concepts spread into business lending.
Take Paper.id, for example. The Indonesian B2B invoicing startup has debuted a BNPL for SMEs in need of financing across the country. The Covid-19 pandemic pushed several Indonesian SMEs to curtail their operations. As the country's pandemic situation begins to improve, these merchants are confronted with cash flow constraints and low payment liquidity.
“We unlock more options for the buyer with a BNPL and digital payment options, including credit card, regardless of the supplier actually provides payment terms or not.” Paper.id co-founder Yosia Sugialam said in the company's press release on October 6, 2021.
Suppliers can use the GPF feature by invoicing their customers via Paper.id's invoicing platform. Customers who submit a validated invoice can receive instant payment from Paper.id ahead of the payment term for a small fee.