Flipkart enhances credit offerings by 3x ahead of festive season sale
In-house developed products like Flipkart Pay Later and Cardless Credit are targeted at online customers who stay outside of metros and are generally not aware of various finance options
In the run up to the forthcoming festive sale, India’s largest ecommerce marketplace Flipkart has expanded the reach of its fintech offerings in order to increase access to credit and affordability options for online shoppers.
A press release from Flipkart said, services such as Flipkart Pay Later and Cardless Credit have increased their reach by 3X from the last festive season. Through this expansion, Flipkart aims to tap into the new-to-credit audience across different geographies and pin codes, and offer them access to its 150 million+ product offerings.
Flipkart Pay later and Cardless Credit are in-house fintech products. Flipkart Pay later enables a customer to shop through the month, upto a predefined credit limit, and pay a consolidated bill after it is generated at the end of the month. Buy Now Pay Later offers credit up to Rs 5,000 at no extra cost. It drives convenience of shopping through one-click instant checkout and refund, up to 40 days of credit at no extra cost and a consolidated bill generated for the entire month.
Cardless Credit extends credit of up to Rs 1,00,000 to shop and pay in EMIs for a maximum period of 12 months. Flipkart said, the initiative has also been adopted by top brands on the platform for them to provide easy credit access to their consumers through no cost EMIs.
Flipkart also recently announced its own co-branded credit card in partnership with Axis Bank. Through these initiatives, Flipkart aims to extend access to credit and offer more purchasing power to its customers.
Commenting on this, Ranjith Boyanapalli, Head - Fintech and Payments Group at Flipkart, said, “By facilitating credit access to even the remotest areas of the country, we are reiterating our commitment to help millions of Indians fulfill their aspirations without the burden of financial constraints. Through these initiatives and their expansion, we hope to take the promise of The Big Billion Days to more customers to enable meaningful growth, with a special focus on Bharat.”
The credit ecosystem in India is growing speedily and holds immense potential with regard to penetration and acceptance. Estimates from CIBIL suggest that while there are some 220 million credit-worthy Indians, a full one third of them have not yet been tapped by formal institutions. Moreover, only 72 million of this base are deemed ‘credit active’, having a live account with a bank or lending body.
(Edited by Megha Reddy)