12 Dec 2023 - 4 min read
Ho Chi Minh City, December 12, 2023 - Traveloka, Southeast Asia’s leading travel platform, today announced the official launch of its Buy Now, Pay Later (BNPL) service in Vietnam – Home PayLater – in collaboration with Home Credit. This partnership brings Home PayLater to the Traveloka platform, allowing travel enthusiasts to explore alluring destinations freely and search for air tickets, hotels, and travel activities with financial flexibility. With the new and rapid Home PayLater powered by Home Credit, users can enjoy a seamless and convenient experience on the Traveloka platform.
Recent data shows that the digital economy’s contribution to Vietnam’s GDP is continuously increasing – in the first six months of 2023, it reached approximately 15 percent, while in 2022, it reached 14.26 percent. The digital economy’s growth opens the possibility for stakeholders and companies to join forces and explore more opportunities to contribute to its development. Notably, the online travel industry and digital finance sector have witnessed a strategic collaboration between two leading companies, Traveloka and Home Credit. This partnership stands as a prime example of the proactive measures taken to align with this forward-looking trend.
Home PayLater provides a seamless and convenient payment method for users on one platform. Customers can effortlessly plan their travel, dining, and shopping activities without worrying about financial constraints. This strategic move by Traveloka aims to elevate customer satisfaction and create more avenues for users to access travel services. Furthermore, the launch of Traveloka's Home PayLater service exemplifies the platform's unwavering commitment to continuous innovation of its products and services. This endeavor aims to stimulate tourism demand and play a pivotal role in the recovery and advancement of Vietnam's tourism industry.
Through the collaboration between Home Credit and Traveloka, the introduction of Home PayLater contributes to the promotion and expansion of the “Buy Now, Pay Later” service in Vietnam. This partnership creates additional products that possess competitive advantages, which greatly simplify and enhance the customer experience through digital solutions.
Caesar Indra, President, Traveloka, shared: "The collaboration with Home Credit to launch Home PayLater aims to offer users a novel payment solution that makes travel more affordable, while ensuring a comprehensive end-to-end experience. Home PayLater further underscores Traveloka's dedication to Vietnam's sustainable and inclusive development, as it allows us to expand travel services to more customers, allowing travel to be accessible to more consumers in Vietnam. At the same time, this initiative marks a pivotal step in the digital transformation of Vietnam’s tourism industry – it caters to the needs of tech-savvy young customers who are keen to explore the world in comfort and with convenience in the palm of their hands.”
Mr. Michal Skalicky, Director of Products and Customer Relations of Home Credit Vietnam, said: "Young individuals are constantly driven to embark on travel adventures and explore new destinations. However, with the current difficult economic context, most of them also strive to minimize their financial expenses. The “Buy Now, Pay Later” Home PayLater enables them to indulge in their travel aspirations without the burden of immediate financial concerns. Moreover, through our collaboration with Traveloka, we are committed to providing customers with highly advantageous promotions, flexible payment options, and catering to their specific travel and tourism requirements during special occasions. As the Lunar New Year of 2024 approaches, we aim to deliver an exceptional travel experience tailored to their needs”.
In Vietnam, the collaboration between Traveloka and Home Credit for travel-related products and services stands out as an innovative initiative in this domain. The introduction of Home PayLater provides users with a quick and simple "Buy Now, Pay Later" payment method, a digital solution that helps make travel more affordable to Vietnam consumers. Moreover, it enhances the cost-effectiveness and accessibility of travel for a wider pool of audience. Tailored to the preferences of technologically proficient young customers passionate about traveling, it addresses their demand for convenient and seamless shopping experiences.
According to the latest 2023 e-Conomy SEA report, Vietnam's digital economy is forecast to reach 30 billion USD in 2023 and 45 billion USD by 2025, of which online travel accounts for 15 percent. In this context, Traveloka has emerged as a pioneering force by offering the "Buy Now, Pay Later" option for travel products and services, showcasing its technological advantages, as well as its quick market adoption. In addition, Traveloka has a strong foundation in Vietnam’s travel ecosystem, having established a presence in the country approximately 8 years ago. Home Paylater will provide more options on the platform to elevate the experience for current users and attract new ones.
Based on statistics from the market research company Research & Market, the adoption of the “Buy Now, Pay Later” payment method in Vietnam is projected to experience a compound annual growth rate of approximately 31.1 percent from 2023 to 2028. The total value of goods bought now and paid later in the country will increase from 1.5 billion USD in 2022 to 9.1 billion USD in 2028. With this great potential, and as the pioneer among travel platforms to provide the “Buy Now, Pay Later” services in Vietnam, Traveloka and Home Credit have a distinct advantage in terms of market development and expanding their market share. Furthermore, this enables them to enhance customer experiences, foster customer retention, and stimulate consumer travel demand, thus contributing significantly to the growth and sustainable development of the Vietnamese tourism industry.
With Home PayLater, customers can enjoy instant access to Traveloka's services without the need for upfront payment. They can conveniently commence the first payment period starting from one month after the purchase date, while benefiting from a 0 percent interest rate. Home PayLater does not impose conversion fees, hidden charges, or account opening fees. Additionally, thanks to Home Credit's digital technology integration, customers can experience swift loan approval in under 60 seconds.
Furthermore, when using the Home PayLater payment method, customers can enjoy attractive discounts on all services offered on the Traveloka platform. They can receive a 50 percent discount, up to 100,000 VND, or a 5 percent discount, up to 300,000 VND. Additionally, Traveloka hosts the Home PayLater Day program every Tuesday, providing users with even more enticing promotions, whereby customers can avail a 10 percent discount, with a maximum value of up to 500,000 VND, on services such as room bookings, airline ticket purchases, domestic and international tours, and many more.