Indonesian tech company GoTo Group has expanded its partnership with TikTok by introducing a “Buy Now, Pay Later” (BNPL) service, GoPay Later, on TikTok’s ShopTokopedia platform.

This follows TikTok’s acquisition of a controlling stake in Tokopedia which was completed in January this year, aimed at reviving its e-commerce ambitions in Indonesia.

GoPay Later users will have access to a simplified credit process that includes a data verification step using facial recognition to activate GoPay Later on ShopTokopedia.

The service offers credit limits of up to IDR 10 million (approximately US$ 613) and flexible repayment terms ranging from 1 to 12 months, without requiring a minimum transaction amount.

Indonesia has over 97 million unbanked adults who lack access to secure financial services.

GoTo Financial, the financial arm of GoTo Group, seeks to address this gap with GoPay Later.

In the first quarter of 2024, GoTo Financial’s consumer lending business, including BNPL and cash loan products, grew significantly, with outstanding loans reaching IDR 2.7 trillion (US$ 165.5 million), reflecting a 43% increase from the previous quarter.

Hans Patuwo, GoTo Group’s COO said,

“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 further fuel business growth.”

Melissa Siska Juminto, President Director of Tokopedia and TikTok Ecommerce, said,

“We are proud to work with GoTo as our strategic partner as we expand our offering to Indonesian consumers, thereby contributing more broadly to the country’s digital economy.

GoPay Later on ShopTokopedia, will help us provide more merchants and small businesses with increased flexible payment options, enabling them to offer their customers a more seamless shopping experience.”

The article first appeared on Fintech News Singapore