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
Bengaluru:Flipkart has announced that its micro-credit offering called Pay Later has garnered a lot of attention from buyers. The e-commerce giant also plans to expand its credit offering, targeting a 2X growth over the next six months.
Flipkart Pay Later offers credit solutions to buyers on the e-commerce platform. It is a 30-day credit product that does not have an interest fee. The company claims that it offers bank-grade security without an OTP for most transactions. Additionally, it has end-to-end digital KYC, a checkout process for items priced up to ₹10,000, and a single-click payment mechanism that makes purchasing a low-cost item easy.
Flipkart claims that 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% 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.
Further, Flipkart Pay Later has seen an increase of over 50% in the number of registered users as of 21 July in comparison to the previous year. Customers have used the offering mainly for purchases across categories of beauty and general merchandise, home and lifestyle.
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.
Flipkart also 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.