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Fintech Trends 2023: 1 Out of 4 People Use Pay Later

The use of financial technology (fintech) applications is now increasingly massive. Not only as a payment method, fintech can also be used for various financial activities.

Jakpat conducted a survey to find out the behavior and habits of fintech users in Indonesia in the second half of 2023. The report, which involved 1503 respondents, shows how to view financial planning and use in the fields of digital payments, investment, online borrowing, and insurance.

The survey, which involved Gen X, Millennials, and Gen Z; focused on three types of digital payments. Namely e-wallets, internet / mobile banking (consisting of mobile/internet/digital banking and virtual debit cards), and buy now pay later/BNPL that commonly known as pay later (online loans and peer-to-peer/P2P lending).

In general, there are various considerations in choosing a fintech platform. Some of them are registered with the Financial Services Authority/OJK (55%), easy payment methods (54%), and user-friendly applications (50%).

Financial planning literacy

The results of the Jakpat survey stated that two out of three respondents are familiar with financial planning. That means they realize that they must have financial management to achieve life goals.

Half of the respondents are also aware that saving and investing are two things that are relevant to their current financial condition. As many as 28% feel saving is the best option right now while 10% admit they don’t have a budget for both.

“More than half of respondents already understand the importance of financial planning, and some of them also understand the importance of savings, emergency funds, insurance, and investment,” said Head of Research Jakpat, Aska Primardi.

Digital payments

In the second half of 2023, 86% of respondents will make digital payments. Other financial activities that are also carried out, both digitally and conventionally, are paying credit (37%), investment (25%), and insurance (24%).

In more detail, 3 out of 4 respondents use e-wallets as a digital payment method, followed by mobile/internet banking (45%), and pay later (25%). E-wallets dominate payments, both directly (offline) and online.

Aska revealed that sometimes salaries and savings have been eroded by daily needs and lifestyles. On the other hand, there is a possibility of rising incomes being outweighed by the cost of living rising faster and higher.

“With the consideration of a month’s salary that can run out in less than a month, they began to turn to the pay later feature as a solution,” he added.

Investment, credit, and insurance

The top three investment products in the second half of 2023 are mutual funds (42%), deposits (36%), and stocks (32%). Cryptocurrency and National Securities such as bonds and sukuk are also still in demand.

Regarding credit, as many as 66% of respondents who have bills claim to pay later every month. Other installments include House Ownership Credit/KPR (25%), online loans (22 %), and motor vehicles (22%).

Meanwhile, one in four respondents pays for insurance. Some types of insurance owned are health insurance (80%), life insurance (55%), and pension funds (39%).