Online shoppers increasingly opt for No-cost EMI payment opion on leading e-commerce sites
The No-cost EMI finance scheme introduced by Flipkart in June last year, which allows buyers to purchase expensive items online through EMIs without incurring any additional costs such as interest or processing fee.
Key highlights:
- A good 25-50% of all shoppers choose the No-cost EMI option
- Emerging as a highly popular medium for online shoppers for appliances purchases TVs, refrigerators and even laptops
- Indicates a high level of acceptance of No-cost EMI as a payment model
The 'No-cost EMI' finance scheme is emerging as a highly popular medium for online shoppers in India. Especially for appliances purchases TVs, refrigerators and even laptops the No-cost EMI scheme is emerging as a highly popular affordability construct amongst online shoppers, according to a RedSeer Consulting report.
The No-cost EMI finance scheme introduced by Flipkart in June last year, which allows buyers to purchase expensive items online through EMIs without incurring any additional costs such as interest or processing fee that is seen when buying using credit cards.
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Source: RedSeerConsulting
However, Flipkart tied up with Bajaj Finserv to that offers an EMI card that gives online shoppers the ability to for the No Cash EMI' payment mode.
Later other e-commerce sites such as Amazon too started offering the 'No-cost EMI' option by partnering with Bajaj Finserv.
With the No-cost EMI option available, a good 25-50% of all shoppers choose it as their payment option across high value categories such as consumer durables such as TVs, refrigerators and Laptops.
“At a category level, our research shows that availability of no-cost EMIs is highest for TVs, while acceptance is highest for refrigerators,” said the report.
This indicates a high level of acceptance of No-cost EMI as a payment model for such high value categories, said the report.
TVs and refrigerators categories are highest in terms of availability of No-cost EMIs scheme on leading online players and have also seen the highest level of acceptance by online shoppers.
While No-cost EMIs are highly available for laptops, however the acceptance by shoppers to buy this product has been medium.
Large furniture and ACs too has a high demand for acceptance for No-cost EMIs from online shoppers, but is medium in terms of availability across e-commerce players.
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