There was a time when EMI was considered a long, official process that required a lot of paperwork and follow-ups. Today, however, digital technology has changed the process and made it more streamlined, enabling EMIs without a credit card.
EMIs without a credit card empower customers to make immediate purchases that they would otherwise have to wait for.
For businesses, it translates into increased sales. Additionally, such an EMI option is an excellent way to increase the affordability of goods and services for customers and increase the average order value.
In this post, we’ll explore what EMI without a credit card entails and why your business should consider offering this option. Read on!
What is EMI without a credit card?
EMI without a credit card is a term often used interchangeably with cardless EMI. However, there is a slight difference between the two services.
EMI without a credit card is an umbrella term that defines any EMI option available that doesn’t require a traditional credit card. These options may include debit card-based EMIs, digital wallets, etc.
On the other hand, cardless EMI is a payment method that requires neither physical nor virtual forms of cards. A good example is bank-account-linked EMI services provided by third parties, like Zest.
Explained in simpler terms, all cardless EMIs can be EMIs without a credit card, but not all EMIs without a credit card are cardless EMIs. For example, if you purchase a television set on EMI using an app such as Google Pay, you have made a purchase using EMI without a credit card.
Why should your business offer EMIs without a credit card?
Customers today prefer using EMI without a credit card because it lets them purchase expensive items without entering into a cycle of debt that would be difficult to maintain. Credit cards also levy interest on EMI repayments, which isn’t an ideal situation in today’s payments landscape where so many options are available.
Below are the key reasons that make EMI without a credit card an excellent service to offer as a business:
1. Minimal documentation
One of the primary reasons EMIs without cards are popular is that there is minimal documentation involved. Customers download an app like Zest or Google Pay, upload their KYC documents for verification, link their bank accounts, and the EMI service is made available to them immediately.
On the other hand, traditional EMI involves approaching a formal financial institution with proof of income, address, identity, credit score, etc., to get access to EMI services. EMI without cards is thus much easier to use for customers.
2. Simplify checkout
The biggest hurdle to shopping online is a complicated checkout process. If a customer wishes to use the EMI option at checkout, the process would inevitably become long-winded. It may give the customer second thoughts about completing the purchase, making your business potentially lose a sale.
This is where EMI without cards helps customers quickly complete their purchase. The verification and approval process is short, and the absence of card numbers and CVVs simplifies the checkout process even more. This enables faster checkouts while the customer intent is still warm.
3. Better affordability
EMIs empower customers to purchase items that they wouldn’t buy if they had to pay the entire amount upfront. For example, a customer may think about purchasing a television set that costs INR 50,000 through an EMI of 6 or 9 months.
However, removing the EMI option makes the television set unaffordable for the customer, who would now have to pay for it upfront.
EMI without cards is an excellent way to enhance your customers’ purchasing power by making more premium goods and services affordable and accessible.
4. No interest or other hidden charges
EMI without cards does not have any hidden interest or charges that show up later on the bill or bank statements. The instalment to be paid each month can be set for auto-debit to avoid missing a payment.
Additionally, the service provider may also specify the tenure for which more affordable EMI options are available to customers. For example, the 6- or 9-month tenure can have better cashback or discounts than the 3-month option.
Overall, customers who choose this payment option are very attracted to the fact that they do not have to shoulder extra interest payments month after month.
5. Faster approval
EMI without a credit card has a very short approval process. There is no need for a customer to go to a bank, submit paperwork, and wait for verification and approval. All that is required is to download an app that supports EMI without cards, upload the digital KYC, verify the bank account, and it is done.
Every EMI a customer chooses after the initial verification can be accessed with an extremely short approval. The provider will scan any active EMIs on the bank account, and their repayment schedule to approve the current one.
6. Better financial discipline
Enabling EMIs without a card helps customers practice better financial discipline while making purchases. Their bank accounts do not need to be debited of a hefty amount all at once; they can opt to purchase premium goods without punching a hole in their budget.
The number of active EMIs on an account also helps customers maintain sufficient funds in their bank account by reducing other unnecessary spending.
To wrap up
EMI without a credit card is an excellent option to encourage your customers to shop without stress. Not only does it help you increase your sales, but it also reinforces a customer’s confidence in the payment system that your brand implements.
Plural by Pine Labs can help you implement EMI without a credit card easily with its robust, reliable, and versatile payment gateway technology. You can offer EMI without cards, offers, discounts, and many other payment methods to your customers right at POS (or online) without much hassle and with a simple checkout process.
Contact Plural today to explore the vast benefits of EMIs without credit cards today!
