Traveloka, an Indonesia-based travel and lifestyle platform, is launching a credit card with Bank BRI aimed at bringing Indonesia’s underbanked online. Bank BRI is one of Indonesia’s largest banks.
The PayLater Card is one of several initiatives under Traveloka’s financial services arm – a growing division alongside its transportation, accommodation and lifestyle verticals. The Expedia-backed company is one of Indonesia’s most closely-watched unicorns, clinching investments from top-notch investors like JD.com, Sequoia Capital and Hillhouse Capital.
Speaking at a conference in Singapore, Traveloka Group of Operations President Henry Hendrawan said that the company wants to solve the “pain points” of Indonesians – one of which is the lack of credit access.
“Currently many Indonesian consumers are forced to book their flights and hotels last minute due to the lack of credit access typically provided via credit cards. Many of these users end up paying higher last-minute prices or sometimes are unable to find the airline seat or hotel rooms they want,” said Hendrawan.
The PayLater card hopes to bring some of Indonesia’s underbanked online by offering exclusive Traveloka deals across travel, lifestyle and even insurance products to its users. Both online and offline transactions will be supported under Visa’s global network, and may also be managed through Traveloka’s mobile app. The partnership aims to issue 5 million PayLater Cards by 2025.
Indonesia remains highly underbanked as a country.
Hendrawan noted that out of its 270 million people, only 17 million have credit cards, suggesting significant room for growth when it comes to credit access and financial inclusion. Assessing creditworthiness also remains a challenge for traditional banks like Bank BRI due to the lack of credit and personal data.
Traveloka, however, sees itself as being able to plug this gap with the consumer data accumulated over the years of hotel, flight and event booking transactions on its platform.
Hendrawan explained at our Asia PE-VC Summit 2019 that Traveloka’s users are less likely to fudge their personal information on the platform since they rely on it heavily for travel planning and transaction purposes. The reliability of its data thus makes it a highly valuable asset for the company.