With festive season sales merely a few weeks away, Flipkart has introduced “Cashless Credit”, to offer instant credit line up to ₹60,000 to its customers.
This new initiative is expected to boost its sales during the festive season, by enabling customers who do not have access to credit formal credit, as the Indian e-commerce giant gears up to compete with its arch-rival Amazon.
Recently, Amazon launched Amazon Pay EMI, to offer credit to its customers with a credit limit ranging from ₹30,000 to ₹60,000.
Both the e-tailing behemoths are engaged in a swirling battle to boost sales and grow customers with the coming festive season sales.
“Close to 45 million customers on our platform do not have formal access to credit and a good portion of this is emerging from tier II, III towns,” said Ravi Garikipati, senior vice president and head of Fintech Flipkart. “Cardless Credit is a step in the direction to make e-commerce more inclusive and help customers with small ticket credit line while they make a purchase at Flipkart.”
Flipkart looks to add more affordability instruments to enable more customers from tier 2 and tier 3 cities, targetting the next 100 million customers.
In related news, it was reported that Flipkart had injected ₹3,463 crores in Flipkart Internet, its e-commerce arm to further boost its efforts to make the festive season sales a hit.
Flush with cash after its $16 billion acquisition by the US-based retail giant Walmart, Flipkart is expected to rope in customers through heavy discounting, cashback offers, and various other incentives.
Recently, Amazon had slashed storage charges and seller fees across five categories, to increase sellers on its platform, in order to offer more choices for its customers for the coming sale.
With the festive season sales only a few weeks away, more customer wooing tactics can be expected to be seen from both the e-commerce giants, looking to grab a bigger piece of the Indian e-commerce pie.