US-based global e-commerce giant Amazon has introduced Amazon Pay EMI, for its e-commerce users in India. This feature is targetted at users who do not have access to credit cards or EMI’s on their debit cards.
Amazon has partnered with Bengaluru-based digital lending company Capital Float, to offer easy EMI options to a select group of customers at first, through its platform.
Initially, the credit limit set for customers is between ₹30,000 to ₹60,000, with plans of increasing the upper limit slowly over time. The EMI’s can be availed for any period ranging from 3 to 12 months. While the company claims to offer zero cost EMI’s for three and six month period, while the rate of interest on nine and twelve months EMI’s is set at 18%.
“Our aim is to target the next 70 million customers who are deprived of credit options while shopping on Amazon, they will be significantly benefitted by these easy EMI options especially with the festive season round the corner,” said Vikas Bansal, director, emerging payments at Amazon Pay.
With over 100 million online shoppers in the country, only 10 million have credit cards and another 20 million use either Bajaj Finance or debit card EMIs. Amazon is looking to bring the next 70 million users under the credit net to enable a seamless shopping experience for its users.
The e-commerce giant will also leverage its machine learning capabilities to reduce frauds that will further help it make loans cheaper for its users.
Amazon claims to have 40% of its deliveries done against cash, the company is looking to reduce this number with easy EMIs on Amazon Pay.
Amazon’s rival Flipkart has also been working towards debit EMI products, enabling customers with debit cards to avail EMIs on select products. Amazon too has a debit card EMI option, but with select banks like ICICI Bank, HDFC Bank, and Axis Bank.
Amazon’s push for easy EMIs on Amazon Pay will also help drive the adoption of Amazon Pay among its users.