Flipkart, has expanded its financing offerings by introducing lending services to customers. The move aims to potentially enhance sales, especially as its main competitor, Amazon, has indicated a slowdown in India.
In collaboration with Axis Bank, Flipkart now offers personal loans of up to 500,000 Indian rupees, as mentioned on its mobile app. The loan process is described as hassle-free, requiring no document submission and offering approval within just 30 seconds. The introduction of this service is expected to provide customers with a seamless borrowing experience. The availability of personal loans was initially reported by Indian news outlet the Arc, and Flipkart has declined to comment on the matter.
By expanding its financial services portfolio, which already includes a ‘buy now, pay later’ option and a co-branded credit card, Flipkart recognizes the importance of providing diverse financing options to address the frugality and credit aversion of Indian customers. Such financing options alleviate the immediate burden of large purchases, resulting in higher transaction volumes and fostering customer loyalty. By enabling consumers to make significant purchases and spread out payments, these services encourage increased spending, ultimately driving substantial revenue growth.
It is noteworthy that Flipkart’s expansion into financial services brings it into closer competition with its former subsidiary, PhonePe. Since their separation last year, the rivalry between the two companies has intensified. PhonePe, in turn, made its foray into e-commerce earlier this year, further intensifying the competition between the two entities.
