Based on OJK data as of July 2024, the number of users with bad credit contributed 1.8% of the total number of paylater financing contracts, while the movement was recorded to have increased by 2.82% month to month (mtm), where June 2024 was recorded at 3.07%. The Financial Services Authority (OJK) recorded the number of buy now pay later (BNPL) users' non-performing financing contracts at 1.5 million contracts. Users who have bad credit are also at risk of having difficulty applying for home ownership loans (KPR).
OJK's Chief Executive Officer for Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) Agusman said there is no information yet on whether those included in the 1.5 million contracts are indeed applying for mortgages or not. In terms of outstanding financing, BNPL products by banks grow more massively than finance companies. Paylater distribution in multifinance recorded a growth of 73.55% yoy or to Rp 7.81 trillion.
On the other hand, based on data from Pefindo Credit Bureau or Idscore, outstanding paylater credit loans were recorded at IDR 30.14 trillion. Meanwhile, BNPL users amounted to 14.37 million as of June 2024, up 9.35% on an annual basis (yoy). Along with the many uses of this buy now pay later feature, bad debts or NPLs have also increased. As of the first semester of 2024, users with collectability (KOL) 5 paylater were recorded at IDR 1.42 trillion.
Of this distribution, users aged less than 30 years to 40 years accounted for the highest bad credit of 38.03%, followed by the age group of less than 20 years to 30 years at 31.7%. Previously, OJK said that currently paylater product loans have been included in the credit history record in the Financial Information Service System (SLIK - OJK Checking). This means that paylater installment payment history can affect consumer credit history.
Source : cnbcindonesia.com
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