Making a big purchase without a credit card might seem impossible, but cardless EMI is changing the game. This innovative payment method lets you break down your expenses into easy monthly instalments, all without the need for a physical credit card.
Say goodbye to maxing out your cards and stressing over high interest rates. Cardless EMI offers a simple and convenient way to manage your finances, whether you’re buying a new smartphone, home appliances, or planning a vacation.
It’s designed to fit your budget and make life easier. Curious about how it works? Read this step-by-step guide to see how cardless EMI can simplify your financial life.
What is Cardless EMI?
Cardless EMI lets customers convert eligible online purchases into easy EMI plans without needing a credit or debit card. At checkout on partner e-commerce sites and apps, you can use your bank account and mobile banking app to access this facility.
This system replaces the need for debit or credit cards and digital wallets, using only your mobile phone and PAN. It simplifies the purchase process for pre-approved customers and merchants, by making it easier for customers to buy the product and for merchants to process payments while tracking them easily.
How do Cardless EMIs work?
To use cardless EMI, customers must verify that the seller or platform offers this payment option. Then, follow these steps to avail of the facility:
- Select the desired product or service.
- Go to the checkout page and choose the ‘cardless EMI’ payment option.
- Fill out the simple loan application form with basic personal details, such as name, contact information, and Aadhar or PAN card details.
- The EMI service provider will evaluate your creditworthiness based on the provided information, often resulting in quick, sometimes instant, approval.
- Select from various EMI plans with different tenures and interest rates to fit your budget.
- Review the terms and conditions and confirm the purchase.
- Complete the purchase by making any required initial down payment and the first EMI payment using a preferred payment method such as debit card, UPI, or net banking.
The purchase is complete. Subsequent instalments will be automatically deducted from your chosen payment method on the decided dates until the total amount is paid off.
Why Should Businesses Enable Cardless EMI?
Enabling Cardless EMI (Equated Monthly Installments) for your business can offer several significant advantages, benefiting both your enterprise and your customers. Here are some reasons to consider integrating Cardless EMI options into your payment solutions:
- Increased Sales
Providing Cardless EMI options makes your products and services more accessible and affordable. This flexibility attracts a broader customer base, helping convert potential buyers who might otherwise delay or abandon their purchase.
By reducing the financial burden of upfront payments, you can effectively boost your sales volume. Customers are likely to choose businesses that simplify their lives. In fact, 67% of consumers will abandon a purchase if their preferred payment option isn’t available.
- Enhanced Customer Experience
Customers highly value the ability to choose payment terms that align with their financial situation. By offering Cardless EMI, you enhance customer satisfaction and loyalty. This payment option provides the convenience of spreading payments over time, making it easier for customers to manage their finances without feeling strained.
This enhanced experience fosters a positive relationship between the customer and your brand, encouraging repeat business and word-of-mouth referrals.
- Competitive Edge
Businesses that offer Cardless EMI options differentiate themselves in the market. This approach not only attracts new customers but also helps retain existing ones by catering to their evolving preferences.
Staying ahead of competitors by providing innovative payment solutions shows your commitment to meeting customer requirements. It positions your business as a leader in adopting modern financial solutions, appealing to a tech-savvy consumer base.
- Increased Average Order Value and Reduced Cart Abandonment
Reducing the barrier of a large upfront payment can lead to higher average order values. Customers make larger purchases when they can pay in smaller, manageable instalments. This can significantly increase your revenue and overall profitability.
Nearly 70% of e-commerce shoppers abandon their carts, often due to a complicated checkout process. Integrating flexible payment options, like cardless EMIs, motivates customers to complete their purchases on time and reduces cart abandonment rates.
Offering Cardless EMI can encourage customers to add more items to the cart without abandoning them and opt for higher-end products, knowing they can spread the cost over time.
- Financial Stability
Collaborating with reliable Cardless EMI providers ensures secure and consistent payment processing. This reduces the risk of late or defaulted payments, contributing to your company’s financial stability and improving cash flow management.
Ensuring steady income from sales made through Cardless EMI can help maintain a healthy financial status for your business. A good cash flow allows for better financial planning and resource allocation, supporting long-term growth and stability.
Driving Business Growth with Cardless EMI
Cardless EMI is a key driver in advancing a cashless economy, offering customers flexible and convenient payment options. Integrating effective software solutions can help your business enhance your business growth.
Software solutions like Plural’s Affordability Suite can help you further enhance this trend. Your customers will benefit from a range of payment methods, including traditional card EMIs, brand EMIs with attractive financing options, and the ‘Buy Now, Pay Later’ feature, which boosts their purchasing power.
Additionally, the suite offers access to discounts, cashback, and exclusive deals, making shopping even more enticing and driving up your sales and customer loyalty. You can opt for Plural’s Affordability Suite and help your business exponentially.
