Cardless EMIs: No Swipe, No Credit Card Needed | Pine Labs

Cardless EMIs now possible with Pine Labs PoS machine

Sonith Reddy : Default

By Sonith Reddy | April 10, 2020

With over two decades of rich experience behind us, we have always leveraged the best of technology to deliver impactful fintech solutions for our merchant partners. Today, over 150,000 merchants are part of our community and our extensive product portfolio is helping them reduce business complexity, mitigate risk and improve profitability.

One such product is the EMI option available from the point of sale (PoS) machine at offline stores. We were the pioneers of debit card EMIs in addition to credit card EMIs which were already so popular. Now we are equally excited to reveal this new offering wherein existing consumers of leading Non-Banking Financial Company (NBFCs) & fintech companies can use their registered mobile numbers with us to avail easy EMIs at the PoS by redeeming their pre-approved credit limits.

What is cardless EMI?

Earlier, a loan application was usually followed by a tedious and lengthy process of approval with the requirement of manual scrutiny at various stages. Following the digital India buzz and the need to go cashless and go paperless, NBFCs and fintech companies in India have adopted smarter methods of offering credit to consumers as well as reduced loan processing times. Additionally, these NBFCs & fintech are increasingly targeting first-time credit seekers who do not have a credit or debit card to make purchases at offline stores and avail EMIs.

How cardless EMI works in-store (for a new consumer):

  • The customer needs to download the NBFC app from Google or Apple app stores
  • Customer goes through a simple and secure registration process on the NBFC app, fills up basic profile and income details, uploads KYC documents and an instant credit line is offered in real-time (linked to registered mobile number)
  • Customer then redeems the limit (using registered mobile number) on the merchant's PoS terminal as a payment method to purchase the product.

Note- The PoS consumer journey is identical to credit card or debit card EMI except for the usage of mobile number instead of the card dip/swipe. Existing customers of these NBFCs with pre-approved limits can directly use their mobile numbers to avail no-cost EMIs (no app download is required).

Customer gets to choose the schemes based on his interest - There is flexibility to repay the loan over a starting tenure of 3 months going up to 24 months at times. An increasing number of OEMs from mobile, consumer durables & laptop segments have shown keen interest to give no extra cost EMIs via Pine Labs NBFC consumer lending.

At present Pine Labs has brought the following fintech, NBFCs & small finance banks (SFBs) onboard viz. ZestMoney, Mahindra Finance, MoneyTap, Tata Capital, Au Small Finance Bank, with plans to add more Partners during FY21. More than 10 million existing customers of these financiers will be ready to visit your stores and make purchases of their choice powered by easy EMIs. With the inclusion of NBFCs to Pine Labs portfolio we now offer solutions across the EMI spectrum and provide product affordability option to the end consumers through credit card, debit card EMIs, and now NBFC-enabled EMIs.

Another USP of the NBFC consumer lending proposition is in making finance available to merchant's walk-in consumers without depending upon a NBFC promoter to be present at the store. This is made possible via the NBFC app download and limit generation process defined above.

On the merchant side we are reaching out to our partners seeking their go ahead for the NBFC consumer lending option by signing of a simple and succinct Addendum document and approving on online PO. Other documents, if required, are same as required for enabling debit card EMI (account linking letter for Nodal account payments). Good news is if you have already signed-up for DC EMI then only an Addendum along with an online PO is required. So, what are you waiting for? Offer your customers mobile on EMI without credit card or give them the benefits of fulfilling their requirements without paying upfront!

Any merchant wanting to get signed-up on priority and out of turn should drop an email with subject line "NBFC Consumer Lending sign-up" to and we will get in touch. Alternatively, merchants can give a missed call at 7428314333 or reach-out to their Merchant Engagement (ME) / Mid-market / KAM / Retail Team Relationship Managers respectively, as applicable.

Note: *NBFC consumer lending supports EMI using two form factors 1) Cards - e.g. EMI/EBC/Credit Limit cards issued by NBFCs 2) Mobile number (registered)

Watch this video for a step-by-step guide on how to carry out EMI transactions on the Pine Labs PoS for customers of leading Indian NBFCs like Tata Capital, Mahindra Finance, MoneyTap, and ZestMoney.