Previously, ‘Buy Now Pay Later’ and ‘Digital EMI’ credit products were popular and were offered offline on a large scale, predominantly at electronic stores. However, these days these credit products are witnessing traction in new segments such as fashion retail stores, auto-dealers, small-town traders, and restaurants as banks are becoming more comfortable in offering smaller ticket loans.
The demand for credit persists, fintech companies are introducing several instant loan products; firms are also broadening the scope of digital EMI products at various offline stores. Thanks to the pandemic! Several customers resumed to their hometowns; various banks have introduced debit card-based EMIs now, smaller cities have also been looking at exploring these credit offerings.
Many retail brands are not only joining banks, but they are also intending at offering customers credit for the purchases made. The retail brands have also shown interest in lessening the interest rates via zero-cost EMIs.
A new set of ‘need-based’ customers are increasing with each passing day due to the ongoing pandemic situation. The increase in Work From Home (WFH) has created more dependency on electronics. The need for smartphones, tablets, and white goods has drastically gone up and has led to an increase of 50% in average basket sizes. Customers are finding the instalment payment option to be more viable. Customers are preferring to buy more stuff via EMI and are not keen on spending money all at once.
Two-wheelers and cars have been the new breakout segments with almost 30 to 35 crore worth of monthly EMI purchases being made. Customers are slowly getting more comfortable at making payments via electronic mode at offline stores. Banks are also encouraging credit options aggressively via debit-card EMIs to existing customers as they have an ongoing relationship with these account holders and can get a glimpse on their cash-flows. Digital EMIs are slowly finding a new market amidst various new segments.
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Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.