Did you know that according to RBI, January 2020 saw a total of 458.45 million transactions through debits cards on PoS? Pine Labs offers first-of-its-kind EMI on debit cards and has been helping merchants increase their sales.
India is turning into cash-light economy and the option of EMIs at offline retail stores is providing the much-needed impetus to boost this digital economy. EMI on PoS is creating a win-win situation for both customers as well as merchants. For a customer, opting for EMI provides the convenience of buying a product of his/her choice without spending a hefty amount all at once and for offline retailers, it helps them boost sales by even converting casual store walk-ins to sales.
One of the easiest ways for merchants to attract customers is by displaying the message of EMI availability. This is especially true for offline retail stores such as electronics, consumer durables and IT where the cost of a product is typically high. Considering the high prices of products like electronics, furniture and gadgets, offering the option of EMIs on credit and debits cards can help merchants generate great benefits for their businesses.
One of the major benefits for merchants offering EMI option is that the customer generally tends to go for impulsive purchases. Before we proceed, let us understand what impulsive buying means. In simple words, an unplanned decision of buying a product or service that might not be an immediate need is known as an impulse purchase. This usually is a result of cashback offers, instant credit availability or discounts offered at the time of buying.
Let us have a look at how EMIs are helping merchants sell big-ticket items:
#1. Cater to a wider and untapped customer segment
Offering the option of EMI on PoS gives merchants the benefit of tapping that segment of aspirational middle-class consumers who cannot afford expensive products with a lumpsum payment. Affordability through EMIs expedites a customer's buying decision and in return increases a retailer's profitability. Catering to a wider and untapped customer segment automatically increases the chances of selling big-ticket items.
#2. New customer acquisition
Providing the option of EMI allows retailers to increase their customer base. New customers get attracted as they get the option of buy now, pay later. Retailers can see this as an excellent opportunity to acquire new customers and expand their business.
#3. Boost in sales
One of the biggest advantages for a retailer offering EMI is increase in sales volume. EMI on PoS is gaining momentum in India and Pine Labs offers the same through both credit and debit cards. This makes products more affordable to the customer, thereby increasing sales of merchants. The ease at which EMI on PoS is executed is undoubtedly another reason that helps merchants in selling products of high value.
#4. Retaining customers
A happy and satisfied customer is what any merchant would strive for. Another interesting outcome of offering EMI on PoS in building customer loyalty and getting repeat business from customers. Once a customer gains the confidence of buying products without any hassle, and without having to spend the entire amount all at once, he/she is likely to return to the store the next time to buy a product.
#5. Competing with e-commerce
With e-commerce big billion sales posing a serious threat to offline retailers, it has become important for offline merchants to offer products at affordable prices and the option of no-cost EMIs acts like a cherry on the cake. Offering an offline deal better than an online deal can help woo customers from e-commerce to offline stores and help merchants sell more products in the process.
EMI-led purchases are a growing trend in India and an excellent opportunity for merchants to sell high-value products. If you are looking to increasing your sales rapidly and build a loyal customer base, do get in touch with Pine Labs and offer EMI on PoS to your customers. Avail the benefit of quick EMI calculations from within the PoS machine and recommend best offers to your customers to help them expedite their buying decision.