This is the Convenience of PayLater According to Gen Z and Millennials in Indonesia

PayLater is a purchase method with delayed payment, also known as Buy Now, Pay Later. This service facilitates access to credit with lower minimum amounts, especially for people without access to bank credit.

A survey by the Katadata Insight Center (KIC) and OVO Financial shows several benefits people experience using PayLater.

In terms of ease and convenience, the majority of Gen Z and Millennials (63.1%) use PayLater because of the easier and faster application process.

According to the survey titled "Perception and Motives for Using PayLater among Gen Z and Millennials," users appreciate the accessibility and ease of use without needing a prior credit history.

56.7% of respondents felt comfortable with PayLater because it can be used for various needs, from daily necessities to electronics.

This was followed by 52.2% who experienced the benefit of flexible payments; 50.9% did not need physical collateral; and 47.1% appreciated the diverse payment options.

Other PayLater benefits included low interest rates (39.2%), not needing a credit card (36%), and not needing a credit history (23.7%).

The survey also revealed the security benefits Gen Z and Millennials perceived when using PayLater.

61.4% of Gen Z and Millennial respondents considered PayLater a financially regulated product.

PayLater providers were also considered to have a good reputation (51.8%); guarantee customer data confidentiality (50.2%); and come from large, trustworthy companies (49.6%).

The survey also showed that PayLater users prioritize regulatory and data security aspects over operational aspects such as billing or use by others.

The KIC and OVO Financial survey involved 2,153 respondents, comprising 36.1% Gen Z (21-26 years old) and 63.9% Millennials (27-42 years old). Respondents were selected using purposive sampling. Respondents were spread across 10 selected Indonesian cities: Yogyakarta, Surabaya, Semarang, Palembang, Medan, Makassar, Bandung, Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi), and Banten.

Data collection was conducted online in mid-2024.

(See also: PayLater, the First Credit Service Used by Most Indonesians)