Indonesian Paylater Market Shows Continued Strong Growth

Banking Sector Paylater Performance

The Indonesian banking sector's paylater credit maintained robust growth through September 2025, reaching Rp25.49 trillion with a 25.49% year-over-year (YoY) increase. This growth represents a slight deceleration from August 2025's 32.35% YoY growth rate. The number of banking paylater users expanded to 30.31 million accounts, up from 29.33 million in the previous month. The non-performing loan (NPL) ratio for banking paylater credit improved slightly to 2.61% from 2.69% in August 2025.

Finance Company Paylater Growth

The paylater business of finance companies demonstrated even more rapid growth, with outstanding loans surging 88.65% YoY to reach Rp10.31 trillion as of September 2025. This growth accelerated from the previous month's 79.91% YoY increase. The NPL ratio for finance company paylater loans remained stable at 2.92% compared to the previous month.

Overall Credit Growth Trends

The overall banking credit growth during September 2025 showed varying performance across different credit types. Investment credit led the growth at 15.18% YoY, followed by consumption credit at 7.42%, and working capital credit at 3.37%. Corporate credit grew by 11.53%, while MSME credit recorded a modest growth of 0.23%.

Sectoral Credit Distribution

When analyzed by economic sector, credit distribution showed significant growth in certain industries. The mining and quarrying sector recorded a 19.15% growth, while the transportation and warehousing sector grew by 19.32%. These sectors demonstrated strong credit demand during the period.

Market Implications

The continued strong growth in paylater credit across both banking and finance companies indicates the persistent popularity of deferred payment solutions among Indonesian consumers. While the NPL ratios remain relatively contained, the rapid growth in paylater lending warrants continued regulatory attention to ensure sustainable growth and consumer protection.