Semaai
Project type: 0 to 1
Semaai Bayar Tempo (MVP)
Create a pay later feature for toko tani which aims to provide easy access and capital for small toko tani to leverage their business ecosystem. With this easy access to capital, it is hoped that farm shops can take advantage of the capital provided to sell the best products in their business.
My Role :
UX, researcher, UI designer, interface designer
Timeline
Q3 2022
8 mins read
Semaai Marketplace
Background
Create a pay later feature for toko tani which aims to provide easy access and capital for small toko tani to leverage their business ecosystem. With this easy access to capital, it is hoped that farm shops can take advantage of the capital provided to sell the best products in their business.
From Toko-tani's point of view, they are familiar with the Tempo payment method, which is a payment method in which Toko-tani pays after a certain period of time after the goods are received in the hope that the goods they buy are sold when they are due. Semaai took the initiative to develop the Buy Now Pay Later (BNPL) service, namely Bayar Tempo to answer Toko-tani's needs and capture the potential development of our current products and services.
Why pay later?
The function of pay later is to provide consumers with the option to make a purchase without having to pay immediately at the time of the transaction. The main purpose of pay later is to offer payment flexibility to consumers by allowing them to postpone payment until a specified period after the purchase is made.
Here are some other functions of pay later:
Payment convenience: Pay later offers convenience to consumers by reducing the financial burden at the time of purchase. It enables consumers to have immediate access to products or services without having to pay in full right away.
Cash flow management: For consumers, pay later can help better manage their cash flow. They can choose the appropriate time to make the payment, based on their financial situation.
Product evaluation opportunity: With pay later, consumers have the opportunity to test and evaluate the product before making full payment. This allows them to ensure their satisfaction with the product before committing to payment.
Flexibility in purchasing decisions: Pay later provides consumers with flexibility to decide whether they want to keep the product or return it before making full payment. This gives consumers the freedom and confidence to make purchases more comfortably.
It’s align with our vision to lifting up toko tani livelihood, flexibility to set up their financial management and purchasing. But, we want to understand user behavior with distributor.
Hypothesis
To maintain cash flow, toko tani will prefer purchasing with BNPL rather than cash payment.
The availability of BNPL will increase Toko Tani average order value.
The availability of BNPL will increase Toko Tani purchase frequency.
Toko tani will increase their total inventory value due to BNPL payment.
Challenges
From Toko-tani's point of view, they are familiar with the Tempo payment method, which is a payment method in which Toko-tani pays after a certain period of time after the goods are received in the hope that the goods they buy are sold when they are due. Semaai took the initiative to develop the Buy Now Pay Later (BNPL) service, namely BayarTempo to answer Toko-tani's needs and capture the potential development of our current products and services. So we conducted user research to understand how user activity, their motivations and “why’s”
User research
Understand the purchase behaviour of Toko-tani
Understand the payment behaviour of Toko-tani for purchasing inventory;
Understand offline BNPL journey
Understand how Toko-tani views BNPL;
Understand the Tempo payment behaviour of Toko-tani
Understand which repayment concept is suitable for Toko-tani;
Find the profile of Toko-tani potential users of BNPL services.
To differentiate ourselves in an already mature and competitive market, we needed to define a desirable role for the app and how it would meet the needs of the scheme's users. We were thrilled by the opportunity to create something more meaningful.
Stephen Anderson's UX Hierarchy of Needs heavily influenced product strategy
Output we are looking for
Insights and recommendations on the product requirement of BayarTempo
Terms and familiar use case in Bayar Tempo
Journey of Bayar Tempo
Insights and recommendations on the pricing & repayment concept of BayarTempo
Insights on the impact of BayarTempo on Toko-tani
Persona of potential user of BayarTempo
Research Participants
We conducted research toward 17 toko tanis (8 in Solo area & 9 in Pati area), mostly research participants are >50 years old and only 1/3 are millennials
They run the business since >10 years, it can indicate they have various experience including using pay later
Mostly user participants have >Rp30mio purchases / week, it is such big amount and perfect chance to maximize it
3/4 of participants selling subsidize fertilizer
There’s the amount that uses pay later and that does not is almost equal
Their transfer behaviour is using bank transfer to distributor bank accounts
Insights from Our Research Participants
There is correlation between Toko-tani who use Tempo with their KPL status and business scale.
50% of Toko-tani who use Tempo are KPL and medium-to-big Toko-tani (with turnover of Rp>15mn/week)
KPL and/or medium-to-big Toko-tani are established Toko-tani; KPL is legally established and medium-to-big Tokotani is established business
Established Toko-tani are considered by distributors because of low NPL risk.
Established Toko-tani use Tempo as a gain creator, which means they don't actually feel pain points if there's no Tempo. They use Tempo to get more profit.
The reasons of Toko-tani for not using Tempo are:
Feel uncomfortable with debt [55.5%]
Tempo is considered complicated [22.2%]
No offers from distributor [11.1%]
Have enough money [11.1%]
From conducting research, we found that :
The most ideal time frame for Tempo is weekly; with maturity period is 2 weeks
Toko-tani have the perception that the price between paid in Tempo or cash is just the same, but if paid in cash they will get a discount
Toko-tani don’t want to be bothered to calculate the additional cost in order to set the selling price
Design strategy
After we got several insights from research, we have ideation how design should be, There are several important points I can implement in design
Create straightforward flow for Semaai Bayar Tempo
[Pricing] The initial price shown in the catalog is the Tempo price, where when the user pays in cash (CBD or COD) the user will get discounts.
[Repayment] The ideal time frame for Bayar Tempo is weekly with a reminder for payments every week and due date is every 2 week.
[Repayment] There is a clear reminder every week via WhatsApp to make repayments, which includes the amount of the bill, the choice of payment method, and the payment deadline.
User flow
Use Case 1, use case 2: BNPL Interface
Use Case 3: Checkout scheme on Marketplace
Design Wireflow
We should using human centered design principle for coupon interface, these all are the use cases in coupon and how the expected outcome should be achieved by user.
After user get approval on Semaai Tempo
Repayment Options for Semaai Tempo (Bank Option)
For now, we only have 4 banks to accommodate payment and the payment will be on virtual account payment
High fidelity design
Registration flow
Semaai Tempo Entry Point
Semaai Tempo First Page (Onboarding)
Verification Page
Terms and Agreements
Select Bank
Send OTP
Enter OTP
Waiting for Approval
User is Approved
Unapproved User
User can access Tempo from their profile page
Repayment flow
Semaai Tempo Dashboard
The page when user is successfully register in tempo
Due Date is Passed
User cannot using tempo until the bills has paid
With Multiple Bills
User can only proceed 1 bills to pay
Bills Page
List of Banks
Post Payment
History Page
History Page is Empty
If user back to dashboard, but already initiate VA payment
Payment Success
Payment Fail
Payment Pending
VA is copied
Payment method using BNPL flow
SMS
Succeed
Failed
Send Again
Edge case
Minimum Order
Tempo Deadline is Over Due
Conclusion
Semaai tempo feature is a feature that is useful for helping with capital for agricultural kiosks with a certain amount of capital with 0% interest, it is hoped that later with this feature, farmer stalls will no longer have trouble getting access to capital for their business, increasing their value order and this is also in accordance with semaai's goal, namely to empower umkm Indonesian agriculture
