Fintech companies are testing instant loan products and expanding the reach of their digital equivalent monthly payment (EMI) products to offline stores, as the demand for credit continues.

Digital EMI credit products, or “Buy Now, Pay Later”, were widely offered offline in white goods and electronics stores. This model, developed by companies such as Bajaj Finserv Ltd, is now finding success in newer segments such as car dealerships, fashion stores, restaurants and small town traders, with banks more out of the way. comfortable with small loans.

Banks rolled out debit card-based EMIs as metro customers traveled to their hometowns. Small towns are also preparing for these credit offers. Retailers have also joined the banks and are willing to offer customers credit for purchases, absorbing interest rates on zero-cost IMEs.

“Unlike ambitious upper-middle-class customers, who would use EMIs at offline points of purchase to upgrade their purchase, there is now a new category of ‘needs-based’ customers, as the covid and the working from home have increased dependence on electronics. Therefore, the payment of purchases in installments is more viable, ”said Rajeev Agrawal, founder and CEO of enterprise payment solutions provider Innoviti.

Purchases based on Buy Now Pay Later were up 30% in October compared to the same period last year, for Pine Labs, which is said to have the lion’s share among fintechs in the offline EMI marketplace. Cities that are level 2 and above account for 54% of the overall transaction value of EMI products on its platform.

“With covid, the need for electronics, smartphones and household appliances has increased, resulting in a 50% increase in the average basket size. Individuals are buying more on IMEs and trying not to spend it all at once, ”said Kush Mehra, Business Director of Pine Labs.

Over the past year, Pine Labs has also launched products such as Instant EMI for smaller ticket sizes, which allow users to scan the company’s QR code at merchants and receive credit. snapshot for above basket sizes. ??5,000. It has already activated 50,000 merchant touchpoints with its Instant EMI product and provided EMI solutions to 150,000 merchants nationwide.

Pine Labs competitor Mswipe joined the rush and launched its digital EMI platform in October after piloting it for nearly two years. Mswipe’s EMI platform takes a brand-centric market approach and enables brands to offer offerings on its offline merchant network and provide customers with zero-cost EMIs, to push inventory faster into offline points of sale.

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