GoTo and TikTok Set to Launch BNPL Offering – Fintech Singapore

Indonesian technology conglomerate GoTo Group is preparing to launch a “buy now, pay later” (BNPL) service in partnership with TikTok, according to Tech in Asia.

This development follows GoTo Financial, the group’s financial technology division, appointing David Chen as the Head of Consumer Lending and BNPL operations.

Chen brings experience from co-founding and leading the BNPL platform Atome, and he retains his roles as Co-founder of the Advance Intelligence Group and Chairman at Atome Financial.

The recent merger of GoTo’s Tokopedia and TikTok Shop was finalised in January this year. Under the agreement, TikTok has pledged an investment exceeding US$1.5 billion into the joint venture, thereby maintaining GoTo’s stake without further dilution.

Highlighting the lending segment’s significance, GoTo reported a 32% quarter-over-quarter growth in its consumer lending portfolio. The company said that it is on a positive trajectory towards achieving breakeven in adjusted core earnings within the current year, a goal supported by recording its first quarterly profit in the last quarter of 2023.

GoTo’s decision is an interesting move as the sector has seen its fair share of BNPL operators either retracting or ceasing operations altogether. This raises questions about how GoTo plans to differentiate its offering and succeed where others have faced difficulties.

Featured image credit: Edited from Freepik

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