Traveloka: Buy Now, Pay Later Plan to Boost Tourism

One of Southeast Asia’s largest travel app is looking to launch financial services in both Vietnam and Thailand. Traveloka is a 9-year old company that has the backing of both JD.com and Expedia. According to its president, they are seeing a rebound happening in the travel industry soon now that “the worst has happened”. Apart from offering financial services in Southeast Asia, it is also looking at a possible IPO in the US.

Traveloka’s president Caesar Indra told Reuters that the company has already surpassed COVID19 levels in Vietnam. He said that “domestic travel is driving recovery”. Their game plan is to get more people to travel in 2021 by investing big in fintech.

Traveloka’s Buy Now, Pay Later Plan

Traveloka has reached 40 million monthly active users. With this, Indra announced that it is offering a “buy now, pay later” service to Thailand and Vietnam users. Indra mentioned that they’ve formed a partnership with some of the largest banks in Thailand.

Indra mentioned that they’ve noticed customers from Indonesia waiting for their paydays before booking travel arrangements. Last year, Indonesian lenders backed Traveloka’s “PayLater” credit cards. Apart from loans, it also included insurance and wealth management services.

This move isn’t a surprise. Pay later scheme is now gaining popularity as travelers are still uncertain on how to deal with the pandemic. Even Malaysia’s tourism campaign is using this offer to entice travelers to travel again. Given the economic impact of COVID19, this trend could reshape how people travel.

Southeast Asia’s Potential

Traveloka sees great potential in the Southeast Asian region. According to Indra, credit card users are limited to 6 percent of its 270 million population. Indra also said that there is a chance that they could buy a bank to expand their financial services. He said that “all options were on the table”.

US Listing

The company is preparing for a US listing by discussing with special-purpose acquisitions companies. Indra said that they are going to provide an opportunity for interested US-based investors to “become part of South East Asia’s growth story”. There were reports that we are looking at a possible $5 billion valuation.