Flipkart has launched a cashless credit program to give shoppers an instant credit line of up to Rs 60,000 ($833.97 USD). According to DealStreetAsia, depending on credit history and past shopping patterns, customers can receive the instant credit line, then have the option to pay for products they buy on the site later in month, or through easy monthly installments (EMIs).
Flipkart CEO Kalyan Krishnamurthy said in a past interview that the firm would create more financial services for consumers. With that in mind, the company launched two new services just last month: Flipkart Finance and Flipkart Finance EMI. Both are offered as ways to pay for purchases, reportedly appearing when a user tries to convert a cash-on-delivery payment to another option.
In addition, Flipkart may also apply for a new non-banking financial company (NBFC) license to boost growth for the online retailer as it takes on Amazon in the Indian eCommerce world.
Senior Vice President Ravi Garikipati, who heads the FinTech business at Flipkart, said the company would take a two-pronged approach after it receives its license, lending directly to consumers’ and through partnerships with other NBFCs and financial services firms.
“The next phase of growth in online retail is going to come from Tier-2 and Tier-3 markets. And we are working on fundamental innovations to enable that growth,” said Garikipati, “A big percentage of our target consumer base does not have access to formal credit. … For them, conventional financial institutions are not a viable option. And that’s where we see an opportunity.”
In August, India’s antitrust regulator approved Walmart’s $16 billion acquisition of Flipkart. Walmart now owns 77 percent of the company, with the remainder of the business held by existing shareholders, including Flipkart Co-founder Binny Bansal, Tencent Holdings, Tiger Global Management and Microsoft.