Homegrown e-commerce marketplace Flipkart plans to
expand its Flipkart Pay Later credit offering targeting a 2X growth over the next six months, the company said in a statement today.
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, the company said.
Owing to the growing reliance on digital payments, Flipkart Pay Later has seen a 70% adoption rate among customers at the
time of check-out and plans to cross the 100 million transaction benchmark by the end of the year, it added.
“As digital adoption continues to increase across the country and customers seek value-driven credit options, Flipkart Pay Later has seen an increase of over 50% in the number of registered
users as of July 21 in comparison to the previous year,” Flipkart said.
Customers have used the offering mainly for purchases across categories of beauty and general merchandise, home and lifestyle, it said.
In fact, 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.
“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,” Ranjith Boyanapalli, Head – Fintech and Payments Group at Flipkart said.
“By expanding the offering, we want to enable customers across the country to fulfil their shopping needs in a seamless and hassle-free manner,” Boyanapalli added.
According to a recent TransUnion Cibil-Google report, small-ticket lending has gone up from 10% in 2017 to 60% in 2020. Customers are increasingly relying on fintech players for their
credit demand which has further been accelerated during the pandemic.
With this in mind, Flipkart plans to expand the reach of its ‘Pay Later’ construct to make credit available not just on Flipkart’s platform but on other partner channels as well, the company said.
Flipkart Pay Later is a 30-day credit product that does not have an interest fee and offers bank-grade security without an OTP for most transactions.