From Cars to Computers: BNPL Empowering Indian Retailers with EMI Options

Automobiles to Laptops on EMIs: How BNPL is empowering retailers in India

Sunil Param : Head of Content and Communications at Pine Labs

By Sunil Param | April 01, 2022

Sunil Param is the Head of Content and Communications at Pine Labs.

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Seeking credit was once considered the last resort for most people. That was long before the wave of digitisation hit India. Today, customers realise the power of a digitised no-cost EMI option and how it can help them tick off items from their wish list and at the same time not make a dent in their monthly budgets. These smart shoppers are driving the smart shopping revolution of Buy Now Pay Later (BNPL) in India where Pay Later EMI offers are being doled out by leading brands and banks in the country. From mobiles and laptops on EMIs to even automobiles, the consumer's market is fast becoming a level-playing field where affordability is made possible, and aspirations are being met through BNPL.

Who would have thought that people would buy premium luxury cars on EMIs one day? That's exactly what was reported in the press few years back when it was revealed that ~65% of Lamborghini cars in India were being sold on the instalment purchase options.

"Let me tell you that we do sell cars on EMI. More than 60 to 65 per cent of our cars are sold on finance. Majority of our buyers are industrialists or businessmen. Unlike in the US, very rarely we witness a corporate professional, like a CEO, buying a Lamborghini in India," said Lamborghini India head Sharad Agarwal.1

Be it the select millionaires or the gigantic middle class in the country, the scale and application of BNPL extends to a wide array of products and verticals today. Retail, for instance is a great example of how merchants in India are now finding it much easier to close a quick sale from both their repeat customers and even that casual store walk-in.

From our own experience of powering smart Android point of sale terminals pan India for leading retailers in India, we can tell you that experience of availing credit at the store via BNPL has improved to a great degree. Customers no longer need to do paperwork and await a nod of approval from a Finance Executive to buy their favorite laptop on EMI or any other product of interest. Retail outlets that accept digital payments can with just a few taps of the PoS terminal convert a regular purchase into a 3, 6, 9, 12 months EMI purchase option.

With a rising global inflation that refuses to abate, consumers drifting away from spending will sound the death knell for retail businesses which were already reeling under the aftereffects of the COVID-19 related disruptions. It is here that consumer interest in purchasing can be kept alive through digital EMI offers via BNPL at the PoS terminal, and retailers in India can get a new way to sell more, sell often to shoppers.