- Bukalapak shutters BNPL service BukaCicilan amid sector turbulence.
- Users directed to third-party providers for installment payments.
- Move follows string of exits and challenges in the BNPL space.
Indonesian e-commerce giant Bukalapak has discontinued its buy now, pay later (BNPL) offering, BukaCicilan, effective February 29, 2024.
The decision comes as part of the company’s efforts to streamline installment payment options for its customers.
Desy Hartono, Bukalapak’s vice president of financial solutions, stated that users will now be encouraged to apply directly with BNPL providers like Kredivo, a move that is expected to provide more convenience for Bukalapak customers.
A string of exits in the BNPL segment
The BNPL sector has experienced a turbulent few months, Bukalapak’s decision to discontinue BukaCicilan adding to a string of exits in the segment.
Singapore-based ShopBack recently discontinued its PayLater service, Atom exited the Vietnamese market, and fellow BNPL player Pace filed for liquidation in November.
Additionally, India’s ZestMoney underwent a distress sale after a failed acquisition attempt.
The recent developments in the BNPL space highlight the challenges faced by companies operating in this sector.
Despite the convenience and flexibility offered by BNPL services, the market has become increasingly competitive, regulatory scrutiny has intensified, and profitability remains a concern for many players.
To read the original article in its entirety: https://www.techinasia.com/bnpl-woes-continue-bukalapak-discontinues-bukacicilan
