The buy now, pay later option has been adopted by a host of lending and e-commerce businesses in India to enable access to goods and services to the underserved and credit-deprived customers.
Buy now, pay later e-commerce app CreditKart FinCom, which was launched on August 28, 2020, is testing a completely unusual route among e-commerce businesses to multiply its user base. The company is offering 100 per cent cashback to customers for purchases made on its app and website till November 25, 2020, with “no hidden charges or terms and conditions,” Swapnil Madiyar, Founder & Director, Mudrakwik Fintech and CrediKart told Financial Express Online. The “never-seen-before offer in the history of offers,” said Madiyar, has never been given by any of the e-commerce platforms.
Launched by online lending platform Mudrakwik Fintech and backed by a family-owned NBFC, CreditKart claimed to offer the entire money back to customers as cashback without any limit on the number and amount of goods purchased. The company, added Madiyar, will pay its merchants the full price of the product sold by them on the platform. “The complete cost of the same will be borne by us. CreditKart is going to burn around Rs 10 crore for this festive offer and everything will be funded by the parent company Mudrakwik,” he said.
CreditKart currently has over 50,000 customers and offers a direct credit line to customers to eligible customers to shop and pay later in three consecutive EMIs without any processing or upfront fees and interest. The app has over 10,000 downloads on Google Play Store. “The idea (with the offer) is to direct traffic and create a database of customers,” said Madiyar.
The buy now, pay later has been adopted by a host of lending and e-commerce businesses in India to enable access to goods and services to the underserved and credit-deprived customers. Flipkart, Amazon, ZestMoney, LazyPay, and more have been enabling customers to buy goods online using the buy now, pay later option. For instance, Flipkart’s Pay Later allows shoppers to get instant credit of up to Rs 5,000 to shop and pay the amount in the following month at zero cost for up to 35 days.