In daily life, paylater users can use this feature at the end of the month for both essential and non-essential needs. For example, if you need to buy a laptop charger because yours is broken, you can purchase it on an e-commerce site today and pay for it next month using paylater.

Even for non-urgent needs, you can use paylater to buy small items like coffee or trendy croissants for snacks. The way it works is similar to a credit card.
 

What is Paylater?

Paylater is a payment method that allows users to make purchases now and pay later. It can be used to buy goods or services on installment. However, paylater is easier to apply for and use than traditional credit.

Despite its benefits, some people avoid using paylater due to concerns about promoting consumerism, not wanting to increase their installment burdens, or worries about data security.

Many people have experienced the benefits of paylater. About 72.70% said that paylater provides an alternative payment method to credit cards. Additionally, 56.80% found it easy to get installment features, while 49.65% appreciated the convenience in paying installments.
 

Read also: Tips for Managing Loans for Millennials and Gen Z
 

Paylater and E-commerce: A Perfect Duo to Boost Shopping Enthusiasm

Many apps now offer paylater, especially e-commerce platforms that add paylater as an alternative installment payment method. You can shop today and pay next month or in the following months, depending on the chosen term. The requirements to get and use it are easy. E-commerce and paylater complement each other and work together to encourage shopping interest.

Almost all e-commerce platforms in Indonesia are equipped with this buy-now-pay-later feature. Paylater options in Indonesia include Shopee Paylater, Blibli Paylater, Tokopedia Paylater, Bukalapak Paylater, Traveloka Paylater, and Lazada Paylater. Besides e-commerce, paylater is also available in online transportation services.

Advantages of Paylater

The high usage of paylater features is not without reason. Paylater has several advantages that you can enjoy.

More Practical and Fast

As a payment method, you don't need to top up your balance or transfer money. As long as the limit is available, you can choose paylater as a payment method on e-commerce sites. After selecting the desired term and entering your PIN, you have successfully made a payment.

Easy Application Requirements

You don't need to go to a bank or provide collateral to use paylater. Everything is done digitally. With just an ID card, you can already have the paylater feature. The application process doesn't take long, only a few minutes! As long as you have a good credit history in SLIK, your paylater application will be approved.

Sufficient Limit for Small Transactions

Initially, you will be given a not-too-large limit, but it's enough to buy essential items at relatively low prices. For example, you can use paylater to buy snacks worth IDR 30,000. As time goes by, your limit will increase if you regularly use paylater and always pay your bills on time.

Ability to Pay in Installments

One of the advantages of paylater is the ability to pay in installments like a credit card. Paylater allows you to buy items in installments with terms ranging from 1 to 12 months. This makes the payment burden lighter.

Many Promotions

Paylater also offers attractive promotions for its users. For example, Shopee offers free shipping promotions for those who pay with paylater or ShopeePay. Gojek offers cashback promotions of up to IDR 250,000 for paylater users.

Read also: Meet Neo Pinjam, a Safe and Reliable Bank Loan

Disadvantages of Paylater

Despite its advantages, paylater also has some disadvantages in its use.

Promotes Consumerism and Wastefulness

One of the advantages of paylater is that it encourages people to shop, which can backfire. Paylater can make people more wasteful due to the ease and speed of shopping. You can buy anything you want, even if you don't have the money, including unnecessary items.

Potential to Accumulate Debt

Again, because of its ease of use, you have the opportunity to accumulate debt. Over time, this debt can pile up, adding to your burden instead of lightening it. To prevent this, make sure to pay your installments on time!

Fees and Interest

If you're wondering if Shopee Paylater has interest, the answer is yes. Shopee has paylater interest that you can check in the app. All paylater features charge fees to users.

Even though fees and interest only apply when you make a transaction, the fees vary by provider. Generally, these fees include admin fees, transaction fees, interest, and late payment penalties.

Paylater is another way to borrow money, especially for shopping purposes. It usually doesn't come in cash. So, if you need cash, you should apply for an online loan. One option is Neo Pinjam from neobank, which is fast and easy.

PT Bank Neo Commerce Tbk is licensed and supervised by the Financial Services Authority (OJK) and is a participant bank in the Deposit Insurance Corporation (LPS).