Unlocking No Cost EMI: Benefits for Electronics Businesses | Pine Labs

No-cost EMIs at PoS can work wonders for your electronics business

Sunil Param : Head of Content and Communications at Pine Labs

By Sunil Param | March 20, 2020

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

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With the rapid advancements in technology and this ongoing push towards a Digital India, retailers and especially the ones in the electronics business are in an advantageous position. A good example of this is the option of offering no-cost EMIs from within the PoS machine at the retail store. No-cost EMIs are creating the buzz in the offline retail market today as they have levelled the playing field and helped brick and mortar retailers counter the e-commerce challenge. Retailers, large or small, are now offering high-ticket consumer electronic products to their customers with the option of availing no-cost EMIs. In fact, according to Vijay Sales, a popular consumer durables retail chain in India, 70-80% of their sales happen through EMIs1.

According to a report by TransUnion CIBIL, younger Indians and especially the credit-active GenZers are availing consumer durable loans to buy electronics such as smartphones, laptops, televisions, etc2. For electronic stores, EMI schemes have time and again proven to retain customers who tend to avail credit to purchase high-priced electronics goods. Which is why if you own a retail electronic store; a seamless way to attract more consumers would be by offering no-cost EMI schemes from within the PoS machine. Having said that, there are few instances where EMIs might not be no-cost. It is always a good idea to check the EMI options before pitching it to your customers. Pine Labs's Plutus Smart is an all-in-one Android smart PoS device that helps retailers calculate and compare EMI offers instantly.

The question that arises though is - how do no-cost EMIs boost sales?

Offline retailers who offer PoS-enabled EMI options to consumers stand to gain revenues by upselling. This is because more often than not, consumers, especially younger ones such as millennials and Gen Zers tend to purchase products worth more than their budget simply because they can avail EMIs at the PoS.

Following the market trend, many renowned electronic stores are today proactively offering affordable EMI options on gadgets of all price ranges. For example, according to Avijit Mitra, CEO, Croma, who was quoted in an ET report, Croma experienced a dip in cash purchases to less than 20% over the last few years; while witnessing 20-25% of sales from EMIs and e-wallets.3

Capturing the right target group

Zero-cost EMI options increase the purchasing capacity of the middle class and uplift their standard of living. The aspirational and young middle class of India are increasingly financing products they desire but cannot afford to pay upfront for, using the no-cost EMI option at PoS. It is also the younger generation that makes the most unplanned purchases based on discounts, cashback schemes and offers.

It is imperative to have the right PoS machine for your business that can help your business achieve profitability and growth with increased sales.

Android Plutus Smart - A PoS terminal offering seamless no-cost EMI

Android Plutus Smart from Pine Labs can be your growth companion in this journey. It features an instant EMI calculator that calculates and compares bank/brand EMI options and shares them with consumers to help them expedite their buying decision. It also widens the credit spectrum with its biggest network of banks including HDFC Bank, Axis Bank, SBI, ICICI Banks, etc. for credit and debit card EMI. Consequently, this helps consumers make planned or impulsive purchases with ease and convert casual visitors into potential customers for businesses. Offline retailers can leverage this Android PoS machine by Pine Labs to offer impeccable customer experience to maximise customer retention, loyalty and multiply revenue.

1 The Economic Times


3 The Economic Times