Buy-now-pay-later (BNPL) services is currently on the rise. Affirm, BNPL startups founded by Paypal cofounder Max Levchin, is preparing to go public in Nasdaq. Affirm previously has raised up to 1.5 billion funding with valuation up to 10 billion. This move put spotlight on the future potential of BNPL services.
In this article, i write about developing BNPL service, not for commercial products but specifically for warung. I believe this is also big potential specific for Indonesian market.
Previously, I wrote about warung and startups. You can read it here.
In the past years, there is a rising trends of startups and companies which aim to digitize traditional retail merchants a.k.a Warung.Kudo pioneered this back in 2014. They then acquired by Grab in 2017, and recently rebranded into GrabKios. Next is E-commerce unicorn Bukalapak who dove in in this space big time by launching Mitra Bukalapak in 2017. Mitra Bukalapak is estimated to have 3 millions registered user which makes them market leader in digital warung. Tokopedia followed on by launching Mitra Tokopedia in 2018. There are also smaller players such as East Venture backed, Warung Pintar, KiosOn and Payfazz.
This warung trend apparently not only happening in Indonesia. Amazon last week just announced their move to partner with thousands of kirana store, Indian version of warung, to be used as delivery hub. Jeff Bezos himself came down to India to launch this. There is also Mastercard which enabling multiple initiatives to digitize mom-pop store in Latin America.
In this article, i dive into the reason why the trend is happening and which direction will warung digital going to go in the near future. Lets go!.