Flipkart pushes deeper into consumer lending with Pay Later service

E-commerce giant launches checkout credit across its platforms with PayU Finance as the first lending partner, betting commerce data can broaden access to consumer credit.

Flipkart Group has teamed up with PayU Finance to roll out Flipkart Pay Later, a checkout-embedded credit product across Flipkart, Myntra and Flipkart Minutes, as the e-commerce giant deepens its push into consumer lending.

 

The offering lets shoppers defer payments for up to 30 days, split purchases into three instalments or opt for 3–12-month equated monthly instalments (EMIs), with PayU Finance serving as the inaugural lending partner.

 

"Affordability remains the core driver of how millions in India engage with digital commerce," said Vishal Ahuja, executive director, Flipkart Finance. "As pioneers of easy financing, with Flipkart Pay Later, we are putting a decade of commerce signals to work, building an underwriting model that sees these customers clearly and extends them credit at the moment it matters the most. This is not a payment feature. It is an important step in building a financial services capability that we believe will fundamentally change who gets to participate in India's digital economy."

 

 

To power Flipkart Pay Later, Flipkart Finance has launched the programme with PayU Finance, the NBFC arm of PayU, as its first lending partner, with additional financial institution partnerships planned as the programme scales. PayU Finance serves as the licensed lender, while Flipkart Finance manages customer relationships and credit intelligence, combining commerce data with lending expertise to enable faster and more accurate credit decisions.

 

"As digital commerce continues to evolve, the need for responsible and accessible credit has never been greater," said Deepak Mendiratta, chief executive officer (CEO), PayU Finance. "Through our partnership with Flipkart Finance, we are combining technology, data-driven underwriting, and strong risk management to deliver seamless credit experiences at scale."

 

The credit decisions behind Flipkart Pay Later are built on Flipkart Finance's commerce intelligence, transaction history, purchase patterns and platform behaviour. This is combined with PayU Finance's lending and risk management capabilities. Customer exposure is assessed using multiple data sources, ensuring credit is extended responsibly without over-leveraging.