Flipkart, the Walmart-owned e-commerce giant, has taken a step towards enhancing its financing offerings by introducing customer loans. In partnership with Axis Bank, Flipkart now provides a credit facility of up to 500,000 Indian rupees , as stated on its app.
The loan process is designed to be hassle-free, with no requirement for document submission, and boasts an impressive 30-second approval time, ensuring a seamless borrowing experience for customers. Indian news outlet the Arc first reported this new service, although Flipkart has chosen not to comment on the matter.
This move marks an expansion of Flipkart’s financial services portfolio, which already includes popular options such as the ‘buy now, pay later’ feature and a co-branded credit card.
E-commerce giants in India, including Flipkart and its chief rival Amazon, have long recognized the need for a broader range of financing options to cater to customers’ frugality and credit aversion. Offering financing solutions reduces the immediate burden for customers, encouraging higher transaction volumes and fostering customer loyalty. By empowering consumers to make significant purchases and spread out their payments, these services stimulate spending and contribute to substantial revenue growth.
Flipkart’s deeper foray into financial services is particularly noteworthy as it encroaches on the territory previously held by PhonePe, its former subsidiary. Since their separation last year, competition between Flipkart and PhonePe has intensified. Earlier this year, PhonePe made its entry into the e-commerce sector, adding to the rivalry between the two entities
