Walmart-owned Flipkart is working on expanding its ‘Pay Later’ credit offering and aims to clock 2X growth over the next six months. Currently, there are over 2.8 million customers who have adopted Flipkart Pay Later and have made more than 42 million transactions on the platform to date.
“Owing to the growing reliance on digital payments, Flipkart Pay Later has seen a 70 per cent adoption rate among customers at the time of check-out, and (it) plans to cross the 100 million transaction benchmark by the end of the year,” Flipkart said in a statement.
The online platform said its Pay Later offering has seen an increase of over 50 per cent in the number of registered users as of July 2021 in comparison to the previous year.
Customers have used the offering mainly for purchases across categories of beauty and general merchandise, home and lifestyle, it added.
What is ‘Pay Later’ feature in e-commerce apps?
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, it noted. Pay Later offering is a 30-day credit product that does not have an interest fee. It has end-to-end digital KYC, a seamless checkout process for items priced up to Rs 10,000, and a single-click payment mechanism.
“As a homegrown platform, enabling accessibility and affordability for customers is at the heart of all our offerings,” Company said.
“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,” Flipkart Head – Fintech and Payments Group Ranjith Boyanapalli said.
By expanding the offering, Flipkart wants to enable customers across the country to fulfill their shopping needs in a seamless and hassle-free manner, he added.
According to a recent TransUnion Cibil-Google report, small-ticket lending has gone up from 10 per cent in 2017 to 60 per cent in 2020.
Customers are increasingly relying on fintech players for their credit demand that has further been accelerated during the pandemic.