Facilitating customers through the global BNPL platform.
Bank DBS Indonesia collaborates with Mastercard to launch the digibank Black Mastercard World to keep up with the growing trend of the buy now, pay later (BNPL) payment method. The launch of the new credit card is also part of the continuous innovation of the DBS digital credit card that allows customers to get approval for credit card applications within 60 seconds. After approval and biometric verification, customers will immediately receive digital credit card information on the digibank by DBS application and can directly use their credit card to conduct transactions according to their needs.
The BNPL payment method is gaining popularity in Indonesia and was predicted to grow 72.8 per cent by the end of 2021 and to further increase in 2022. As people seek to improve the quality of life after the pandemic, the BNPL method is used more than just to meet primary needs. In fact, the BNPL solution has become an option for people to support their fast-paced lifestyle, namely shopping for electronic equipment and fashion needs as well as making e-commerce holiday plans. Data show that 30 per cent of people have increased their online spending to meet their daily needs. The buy now, pay later (BNPL) payment method is growing in popularity and is in high demand because it ensures convenient and fast transactions and offers instalment options that can help people manage their cash flow while supporting their lifestyle.
Looking at the trend, Rudy Tandjung, Consumer Banking Director, PT Bank DBS Indonesia, said, “Along with the increasing need for instant and easy banking services, Bank DBS Indonesia has consistently complemented our digital banking services. This is in line with the principle of “Live More, Bank Less”, which means we do not want our customers to be bothered with complicated banking matters. We proudly present digibank Black Mastercard World that will strengthen our commitment to providing innovative banking solutions and helping accelerate the banking ecosystem as well as financial inclusiveness through strategic collaboration with various partners.”
Improving the quality of life by using the BNPL platform as an alternative method of payment is closely linked to the role of digital banking that ensures convenience for customers in conducting daily transactions, especially during the pandemic. The trend is supported by Bank Indonesia data, which showed the value of digital banking transactions surged by 47.08 per cent yoy to Rp3,877.3 trillion in November 2021. In addition, Bank DBS Indonesia saw a shift in customer shopping behavior, from physical stores to online channels in 2021. This is supported by DBS’s internal data, which revealed that merchant transactions are the most widely used e-commerce payment method today.
The collaboration between digibank by DBS and Mastercard aims at providing financial solutions through an easy, fast, and safe loan process for clients. digibank Black Mastercard World offers:
- A three-month BNPL plan with 0 per cent interest for all retail transactions anywhere. Simply access the digibank by DBS application after a transaction to convert the transaction into instalments.
- Broad merchant acceptance means the product can be used domestically and abroad, offline, or online.
- Another benefit for customers is 5x (five times) reward points for transactions at supermarkets and gas stations.
- Reward points earned by customers can be redeemed for shopping vouchers, airline mileage, cashback, and others through the digibank by DBS application.
Ari Lastina, Head of Card Business PT Bank DBS Indonesia, said, “digibank by DBS is increasingly paying attention and listening to changes in customer behavior and innovating, especially in creating a pleasant consumer journey. Through the convenience of approval within 60 seconds, digibank Black Mastercard World allows customers to use the 3-month quickly and safely 0 per cent BNPL service that allows all customer retail transactions at any merchant at home and abroad to be converted into BNPL transactions. So, all can be done from your fingertip using the digibank by DBS application, from submitting a credit card application, converting transactions to three-month 0 per cent BNPL plans, redeeming rewards points, to customer service. We believe that the digibank by DBS credit card enhances customer convenience and benefits during transaction using the digibank by DBS credit card.”
Digitalisation in banking that is supported wholeheartedly by Bank DBS Indonesia helps increase public adoption of digital banking services. The digibank by DBS application offers innovative banking solutions that are accessible from anywhere, anytime in accordance with the signatureless, paperless and branchless concept. The launch of the digibank Black Mastercard World is part of the This is DBS digibanking campaign, the most intuitive and intelligent digital banking capability in Indonesia that offers easy and fast services to meet the daily needs of customers.
Since its launch, the digibank by DBS has maintained the commitment to providing full fledged digital services. The pandemic situation has revealed that people find it quite convenient to meet their banking needs via mobile applications. The digital products and services offered are savings in rupiah and foreign currencies, mutual funds, and bonds. The banking digital transformation conducted by DBS Indonesia has been recognized and earned various awards, namely Indonesia’s Most Popular Digital Financial Brands (Millennials’ Choice) 2021 from ICONOMICS, Indonesia Outstanding Millennials’ Brand Choice Awards 2021 from Warta Ekonomi, Digital Brand Awards 2021 from Infobank, Indonesia Digital Innovation Awards 2021 from Warta Ekonomi and The Best Full-Fledged Digital Banking 2021 from CNBC.
Navin Jain, Indonesia Mastercard, Country Manager, noted that, “Consumer digital adoption in Indonesia is increasing rapidly. Therefore, Mastercard is excited to collaborate with Bank DBS Indonesia to present a new digital payment solution through the digibank Black Mastercard World. Mastercard believes that by presenting this instant credit facility for consumers and providing them access to a wider Mastercard network will support digital economy in Indonesia and increase financial inclusion.”
