Ahead of the upcoming festive season, e-commerce firm Flipkart has extended benefits on its ‘Flipkart Pay Later’ offering to drive affordability and convenience of purchases on its platform. The ‘Flipkart Pay Later’ EMI (equated monthly installment) facility opens a credit line of up to Rs 70,000 that can be paid back over flexible tenures of 3, 6, 9 and 12 months for eligible customers, enabling them to purchase products this festive season.
“Many high-value purchases are made during the festive season,” said Ranjith Boyanapalli, Head-Fintech and Payments Group at Flipkart. “We have strengthened our EMI offerings to ensure that customers can manage finances and expenses judiciously during this period. In the times to come, we will continue to explore partnerships that can help customers upgrade their lifestyle affordably.”
‘Flipkart Pay Later’ will become open to all customers. Today over 100 million pre-approved consumers already have access to the product. With this expansion, online consumers beyond the 100 million who do not have direct access to credit to fulfil their shopping needs will also be able to apply for the product by providing the required information. With ‘Flipkart Pay Later’ becoming an open to all construct, Flipkart aims to bridge the gap between access to credit and consumers aspirations, making this festive season better than ever for consumers across the country.
Flipkart will also be offering no-cost EMI offers across a wide range of products, as well as standard EMIs — in partnership with 18 leading banks and financial companies including, Bank of Baroda, IndusInd Bank, J&K Bank, Kotak Bank, RBL Bank, SBI and Zestmoney. The tenures for no-cost EMIs and standard EMIs will be up to 12 months and 36 months respectively.
To access ‘Flipkart Pay Later’ EMI facility, users need to enter their PAN and Aadhar details on the app. They need to verify the Aadhaar number with an OTP, and verify their bank account details. Flipkart said the application process is quick and frictionless, and customers can manage their account easily through the Flipkart app. Flipkart plans to cross the 100 million transaction benchmark by the end of the year fuelled by increased demand for digital solutions and value-driven credit options.
The pandemic has been a catalyst for India’s e-commerce market, significantly accelerating penetration, particularly in the metro cities. One in three people shopped online at least once last year in these cities, according to a recent report by Bain & Company. Customers are increasingly relying on digital payments and credit to complete their online purchases. The Pay Later facility helps customers stagger large expenses into smaller, interest-free EMIs.
Flipkart said the Pay Later facility is emerging as the fastest-growing digital payment method on e-commerce platforms in India. It is estimated to occupy 9 per cent of the total market share by 2024, according to the Global Payments Report by Worldpay from FIS. Adoption rate of Flipkart Pay Later at the time of check-out presently stands at 70 per cent.