Flipkart in the run up to the festive season has introduced a new payment option ‘Cardless Credit’ which will enable millions of Flipkart customers to get an instant credit line of up to Rs 60,000 to make their festive shopping experience affordable while being able to buy more.
As the festive season kickstarts in India, and Flipkart gears up for its Big Billion Days, customer aspiration and need to buy more is at the centre of conversation. Flipkart is introducing cardless credit as a customer-focused initiative that will simplify access to credit in real time while simplifying credit assessment and application process.
Ravi Garikipati, Sr VP and head of Fintech Flipkart said, “At Flipkart our vision is to solve for our customers. We always look at what our customers are seeking and then build solutions around it. Cardless Credit will have potential customers including the emerging middle class mobile active borrowers who do not have access to credit cards or credit limits. We will leverage the understanding of these customers’ shopping behaviours and offer credit underwriting in a simple and transparent way, to make their shopping experience affordable.”
The current process of getting access to a credit card takes less than 10 days and the high cost of getting credit makes small ticket-size loans cumbersome & unviable. Most of the customers do not get credit due to inability of the Indian banking industry to underwrite new-to-credit customers due to lack of data & insights. In India (as per RBI estimates) there are only 20 million credit card holders/ customers and of the 400 million potential credit worthy Indians the credit coverage only has a penetration of about 20%.
How does it work?
Customers sign up for the credit line on Flipkart
Instant access to credit line (upto Rs 60K) based on scores derived from customer behavior on Flipkart
During checkout, they get access to two options: Pay Later next month or EMIs of 3-12 months (No Cost EMI available)
OTP less checkout for value < Rs 2000
At the end of the month, they can pay their dues using netbanking or debit card.
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