Go-Pay, the payment service for Indonesian ride-hailing app Go-Jek, announced that it will facilitate a mobile credit service to brick-and-mortar stores starting next month. By doing so, Go-Pay said that it seeks to lay the foundation for a broader financial business, as reported by Nikkei Asian Review.
The mobile credit service — called PayLater — allows users to pay for transactions on the Go-Jek platform at the end of the month.
The startup has already offered financial products to drivers and merchants alike, including savings accounts and housing loans, through its local bank partners.
“The addition of PayLater as an option is to provide a wide array of financial products to users, a segment that it has left untouched,” said Go-Pay CEO Aldi Haryopratomo.
Haryopratomo also added that this service will allow users who are unbanked and never had access to these types of financial services to grow their credit history and move up the economic ladder.
Launched in September, PayLater was initially meant for food delivery. It has since expanded into other Go-Jek services like ride-hailing. By July this year, the ride-hailer will give users the option of using PayLater at more than 300,000 offline locations, as well as at online merchants that accept Go-Pay.
Not all users would be allowed access to PayLater, as it will be available only to users approved by Go-Jek’s credit analytics. The decision will be based on various data such as transaction history.
The company said that the credit limit and monthly fee vary among users, with most are charged IDR25,000 (US$2) with a credit limit of IDR500,000 (US$35.05).
To mitigate its credit risk in the lending service, Go-Jek partnered with local peer-to-peer lender Findaya.
Ovo, the payment company used by rival Grab, extended a similar service to offline merchants in early May.