Financing is a key unsolved need in India. Less than 2% Indians have access to credit cards. If customers don’t have credit cards then customers don’t get access to short term credit — a very important use case being the ability to keep making purchases, without the requisite balance in their savings account.
In plus, e-commerce businesses see the challenge of inspiring trust and convenience for the entire online shopping experience from order to delivery. Cash on Delivery is the prevalent mode of online shopping. With Cash on Delivery, customers get to use a quick-to-checkout method without having to key in 2 factor authentication for the payment to go through, also they will pay for their purchase when product comes at their doorstep which inspires more trust and confidence that the product will reach and will reach on time. Also, in case of any cancellations/ refunds, the customers are always wary that their money will get stuck with the platform, and a perception that they will need to keep track and follow up.
Flipkart understand these gaps to create a proposition called Flipkart Pay Later, in order to fulfill the need for access to credit along with reinforcing trust and convenience in our shopping experience for our most valued customers.
With Flipkart Pay Later, the purchase and payment gets de-coupled. Customers can purchase goods on Flipkart throughout the month up-to an enabled limit (Rs 5–10k) without having to go through the payment process every time. Rather, they can complete their purchase at 1 click, receive the products, use them and validate their quality, and later pay. The total payments can all be sum up & paid at one go next month. In case of any refunds or cancellations will happen then there is an automatic adjustment made in their account and there is no need to pay for such purchases. So no money exchange needed for products that they did not find useful and wanted to cancel or return.
This is a truly India specific idea, ape the trusted way of shopping at the retailer next door, where such a book keeping system is prevalent for recurring low value purchases for the most trust-able customer base of the retailer. The retailers identify a base of trusted, most frequent purchasers and do not insist that they pay for every purchase but just clear off their accounts once a week/ month as the case may be. This is a mostly used method of commerce right from large apartment complexes in metros to even folks staying in Tier2/3 cities in India.
Flipkart Pay Later targets at taking online shopping experience to an altogether different level by:
- Developing trust quotient for the customers as they have to pay after receiving or experiencing products
- Logical checkout with 100% success rate on forward transactions
- Comfort in order placement by having truly single click payment solution
- Centralized payback once a month
- Instant adjustments for any cancellations or returns without the customer having to pay any money upfront