Flipkart Pay Later platform expects 2x growth of customer base in next 6 months
, India’s leading ecommerce marketplace, is targeting a 2x growth from “Pay Later” credit offering over the next six months. At present, over 2.8 million customers have adopted Flipkart Pay Later and have made more than 42 million transactions on the platform to date.
A statement from the company said that owing to the growing reliance on digital payments, Flipkart Pay Later has seen a 70 percent adoption rate among customers at the time of check-out and plans to cross the 100 million transaction benchmark by the end of the year.
Ranjith Boyanapalli, Head – Fintech and Payments Group at Flipkart, said,
“As a homegrown platform, enabling accessibility and affordability for customers is at the heart of all our offerings. The success of Flipkart Pay Later so far has shown the benefits that the construct is able to provide to millions of customers and made us confident of its market-readiness for a much wider adoption - both on and outside Flipkart Group’s platforms.”
The statement noted that Flipkart Pay Later has seen an increase of over 50 percent in the number of registered users as of July 21 as compared to the previous year. Customers have used the offering mainly for purchases across categories of beauty and general merchandise, home, and lifestyle. In fact, in categories such as lifestyle, Flipkart Pay Later has exceeded the credit card transactions, making it the top prepaid instrument used by consumers for the category.
This increased usage is due to higher digital adoption and customers seeking value-driven credit options.
According to a recent TransUnion CIBIL-Google report, small-ticket lending has gone up from 10 percent in 2017 to 60 percent in 2020. Customers are increasingly relying on fintech players for their credit demand, which has further been accelerated during the pandemic. With this in mind, Flipkart plans to expand the reach of its ‘Pay Later’ construct to make credit available not just on Flipkart’s platform but on other partner channels as well.