In a recent survey of the behavior and preference of Indonesian fintech services users in the second half of 2023, research firm Jakpat revealed buy-now-pay-later (BNPL) as one of the most popular fintech services in the country, with 25 per cent of users using them in addition to e-wallet (75 per cent) and mobile banking (45 per cent).

Involving more than 1,500 respondents of various ages, the survey revealed that in the second half of last year, 86 per cent of respondents had made a form of digital payment. They also performed other financial activities that included paying for credits (37 per cent), investing (37 per cent), and insurance (24 per cent).

When choosing a fintech platform, Indonesian users considered the following factors: Being registered on the Financial Services Authority (OJK) at 55 per cent, an easy method of payment at 54 per cent, and an easy-to-use, user-friendly app at 50 per cent.

In a press statement, Jakpat Head of Research Aska Primardi explained the reason behind the rising popularity of BNPL, which is attributed to users’ ability to afford daily necessities and lifestyle needs.

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Greater financial literacy in Indonesia

Another element that the survey looked into was user behavior, particularly how Indonesian fintech service users view financial planning. It revealed that two-thirds of users have an understanding of the importance of financial planning and its role in achieving life goals.

Half of the respondents also saw savings and investments as relevant to their lives today. Of these respondents, 28 per cent believed that saving is the best option for the time being, while 10 per cent admitted to not having the budget to save.

“More than half of the respondents have a good understanding of the importance of financial planning. Half of them are also aware of the importance of having emergency funds, savings, insurance, and even investments,” Primardi said.

For investments, the most popular products owned by the respondents are mutual funds (42 per cent), deposits (36 per cent), and shares (32 per cent).

Image Credit: RunwayML

This article was first published on January 10, 2024

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