EMI on debit cards is one surefire way to boost retail sales

As 2020, a tough year finally draws to a close, businesses in the new normal will have to get innovative in the new year. The retail sector in India grappled with disruptions due to COVID-19 and subsequent lockdowns. Closed shops, dwindling revenues, mounting operational expenses and the constant struggle for working capital- the retail sector was a dystopian nightmare this year.

On the other hand, while the cities have now opened in a phased manner, several people have lost their jobs or are sceptical about buying large-ticket items not wanting to use their savings.

Having said that, who are we to undermine the resilience of the aspirational Indian consumer and their potential to bring back the retail sector of India back to its glory days.

Smart tweaks in business models such as introduction of Pay Later are the order of the day. The proposition of letting customers 'Buy Now, Pay Later' can resuscitate the retail economy through demand generation from the consumers who are reluctant to spend a lumpsum on their shopping. The flexible, zero-cost Pay Later EMI on debit cards and credit cards allows consumers to purchase big-ticket items and white goods without worrying about impacting their monthly budget. With Pay Later EMI activation on a PoS device, retailers stand to gain in the new year by giving their customers a convenient and affordable way to shop.

We are witnessing first-hand this massive consumer liking for Pay Later. As per our internal analysis, our EMI business witnessed a 70 per cent YoY growth in small cities of India post-COVID-19.

The major USP of Pay Later has been EMI on debit cards

Credit card penetration in India is typically low. Out of 400 million customers eligible for credit¹, there are over 58 million credit cards in circulation compared to over 865 million debit cards as per September 2020 RBI data. It, therefore, makes business sense to go after this larger group of consumers who can avail EMI on debit cards during checkouts.

Pine Labs Pay Later EMI is available at the point of sale for debit cardholders of leading banks. Since the final bill amount is split into EMIs, customers usually don't hesitate to purchase products, resulting in a boost in sales for the retailer. Add to that the option of lucrative cashback offers and discount campaigns available on debit cards, and it becomes a surefire way to boost retail sales.

If you haven't already, now is the time to make Pay Later EMIs on debit cards a part of your retail store strategy and give your customers the freedom to buy now and pay later! Write to us at getstarted@pinelabs.com

¹ https://www.moneycontrol.com/news/business/for-credit-card-push-banks-now-turn-to-startups-5727321.html