In a bid to ramp up revenues, India’s leading e-commerce brand Flipkart will allow buyers to make equated monthly installments (EMI) purchases through debit cards in the upcoming big billion Day sale. Till now, EMI facility was only available on credit card purchase. The company has reportedly prepared a white list of credible buyers in its internal data, who would be able to avail this facility.
“We saw that this (list) population of buyers was not being able to shop for high value products as they did not have credit cards,” Sandeep Karwa, head of large appliances at Flipkart, told Times of India. “With this plan about to be introduced they can opt for higher priced items which shall push our overall sales volumes up,” he added.
Notedly, the e-commerce companies saw a dip in their sales last year after high currency notes were demonetised.
The facility will mostly be available on large appliances and electronics first and eventually be rolled out in other mid- to high-value products. Flipkart is working on the pilot project and is in talks with Axis Bank and State Bank of India.
In India, the number of debit cards vastly outstripped the number of credit card users. According to the Reserve Bank of India (RBI) data, there are 79.38 crore debit card holders in the country as of June 2017, while credit card numbers stood at 3.14 crore.
Flipkart aims to get 15-20% of its overall sales from large appliances this year, which will take its overall market share to 80% by end of the year with the Big Billion Day sale being a major booster, the TOI report said.
For interesting news videos from InUth, follow us on Youtube.com/InUthdotcom