Flipkart has been spotted listing financing options as new modes of payment, called Flipkart Finance and Flipkart Finance EMI. These options are showing up for select users only, and are 'unavailable' for usage as of now. The options are included when the user is making payments for goods purchased, and particularly when a user tries to convert the COD payment option to another mode. The fact that they are showing up for a few users hints at their arrival soon, and are likely linked to Flipkart's reported plans to enter the non-banking financial company (NBFC) space.
Both Flipkart Finance and Flipkart Finance EMI options are still marked as 'unavailable' for us, and details on what they offer are scarce at the moment. This comes after the e-commerce giant rolled out the new 'Flipkart Pay Later' option earlier this year that allows users to buy the device and pay after a month. The limit on purchase through this option is between Rs. 5,000 and Rs. 10,000. Presumably, the Flipkart Finance option is looking to cater to the audience that cannot afford to buy premium expensive products, and this option may give them a temporary credit via a more formal structure.
As mentioned, there are two options showing up on Flipkart - Flipkart Finance and Flipkart Finance EMI - and this could mean that the company gives the user the option to pay a part of the total amount in one shot, or split the total into monthly instalments. These new payment modes are showing up on the app, as well as the desktop version.
Flipkart Finance and Flipkart Finance EMI options showing up in-app as well
There is no word on when the Flipkart Finance and Flipkart Finance EMI options will roll out to the mass audience, but now that it is showing up for a few users, it can be expected to launch in the near future. We've contacted Flipkart to comment on this new development, and will update this story when we hear back.
A Business Standard report last month claimed that the e-commerce giant is in the process of getting a NBFC licence to enable lending to consumers and sellers.
"Our vision for fintech at Flipkart is to create highly differentiated financial solutions for our customers, both consumers and sellers, leveraging data and technology to make it very inclusive, simple and transparent. A strong understanding of customers helps us arrive at credit-risk profiles very differently and will play a big role in underwriting." Ravi Garikipati, senior vice-president and head of financial services at Flipkart, told the publication.