Paylater Trends Become The Choice Of Young People, Kredivo Commits To Improve Education

JAKARTA - The trend of buying now pays later or Paylater is increasingly popular. The Financial Services Authority (OJK) recorded Paylater growth of 61.90 percent on an annual basis (as of November 2024).

Meanwhile, in terms of users, Kredivo and Katadata Insight Center revealed that 70.4 percent of Paylater users came from the 18'35 year age group.

In line with this trend, Disya Arinda, M.Psi., Psychologist, Clinical Psychologist, reminded the younger generation to pay attention to stable psychological conditions before and when using Paylater.

In addition to unstable psychological conditions, the Fear of Missing Out (FOMO) and You Only Live Once (YOLO) phenomena have also strengthened the consumptive lifestyle of the community, especially the younger generation.

Research conducted by GlobalWebIndex reveals that 62 percent of individuals experiencing FOMO are residents aged 16'34 years. Furthermore, other research conducted by OCBC also revealed that 80 percent of the younger generation spend money to follow a friend's lifestyle.

"The repeated use of Paylater driven by FOMO and YOLO can trigger financial stress and an impulsive pattern that is difficult to control," said Disya.

Responding to this phenomenon, Kredivo, as a pioneer of Paylater services in Indonesia, emphasized its commitment to continue educating users to use Paylater wisely, through various strategic initiatives such as #AutoMikir and #AndaiAndauPadai.

In addition, Kredivo also takes advantage of artificial intelligence in risk management, to assign and review credit limits periodically according to the user's payability, ensuring services can be used wisely without disturbing their cash flow.

Kredivo continues to innovate and expand the reach of services, while consistently providing education to users and strengthening risk management, to ensure that our belief can always be realized, added Indina Andamari, SVP Marketing & Communications Kredivo.