In the ever-evolving world of business, adaptability is the key to success. Debit card EMI, a clever tweak in the traditional retail model, has emerged as a powerful force, breathing new life into the retail economy. It is transforming how consumers approach shopping, especially those wary of splurging a lump sum all at once.
In a country where credit card penetration remains relatively low, targeting the vast pool of consumers with debit cards makes perfect business sense. With over 945 million debit cards compared to just over 86 million credit cards in circulation as of April 2023, the opportunity to offer EMI on debit cards during checkouts opens doors to a much broader audience.
It’s a shift that signifies a new era in retail payment, one that is defined by inclusivity, convenience, and financial empowerment.
Understanding debit card EMI
A debit card EMI empowers customers to convert debit card purchases into easy EMIs, offering financial convenience and flexibility.
When customers opt for this facility, the bank pays the e-commerce store on their behalf, allowing them to walk away with their desired item. The customer then repays the bank through instalments debited from their current or savings account linked to the debit card.
Many prominent banks, such as SBI, ICICI, HDFC, and Axis Bank, provide debit card EMI options to their account holders. This service caters to individuals who may not have access to credit card EMIs or prefer using debit cards for their purchases.
Some critical aspects of debit card EMI are:
- Banks extend debit card EMI facilities to existing customers based on their banking history and relationship with the institution.
- Minimum and maximum transaction amounts may differ from one bank to another.
- The EMI duration generally ranges from 3 to 36 months.
- Interest rates vary, typically starting at 11% p.a. and climbing up to 16%. Some banks may offer no-cost EMIs for a limited time on purchases from select websites.
- Debit card EMI generally doesn’t require a downpayment, security deposit, or blocking of funds. However, some banks may place a lien on fixed deposits.
Benefits of debit card EMI for customers: elevating retail therapy
Retail therapy is undeniably a mood-lifter, but sometimes, your wallet doesn’t share the same enthusiasm. That’s where EMI swoops in. It elevates your shopping experience and keeps your finances in check.
Let’s take a closer look at the perks it brings to the shopping spree:
Customers can divide their purchase into manageable monthly instalments. This flexibility lets consumers make big-ticket purchases without draining their bank account in one go.
No credit card needed
Not everyone owns a credit card, and that’s perfectly fine. Debit card EMI is here for everyone. Consumers don’t need a credit history or card to enjoy the convenience of EMIs.
The EMI approval process is as smooth as silk. Once the shopper eligible, approvals and disbursals are almost instant.
Debit card EMI keeps things hassle-free. While some banks might ask for a few additional documents, it’s far less paperwork compared to traditional loans or credit card applications.
Budget-friendly interest rates
The interest rates on debit card EMIs are generally reasonable, starting at around 11% per annum. Plus, some banks even offer no-cost EMIs for a limited period on select websites, making it even more budget-friendly.
No extra cards needed
With the availability of debit card EMIs, there is no need to clutter the wallet with yet another plastic card. The facility works with the customer’s existing debit card- no fuss, no extra cards, just pure shopping delight.
Boosting ecommerce business with debit card EMI
So, we delved into how this payment solution empowers consumers by providing financial flexibility and easing their shopping experiences. Now, let’s pivot our focus to the other side of the coin, exploring how embracing debit card EMI can substantially contribute to boosting your ecommerce business.
Here’s how this payment option can help drive your sales and take your retail business to the next level:
Attracting a wider customer base
Debit card EMI opens the doors to a broader customer demographic. Not everyone owns a credit card, but many have a debit card. In fact, less than 5% of Indians have a credit card, while more than 27% own a debit card. Merchants can tap into this vast customer base by offering this payment method, making their products and services accessible to a more extensive audience.
Encouraging larger purchases
Big-ticket items can sometimes scare customers away due to the substantial upfront cost. Debit card EMI changes the game by allowing shoppers to spread their payments over time. This encourages them to buy high-value items they might have otherwise hesitated to purchase.
Enhancing customer loyalty
Providing EMI options shows that you understand and care about your customers’ financial needs. This customer-centric approach can foster loyalty and trust, making shoppers more likely to return to your store for future purchases.
In today’s competitive retail landscape, standing out is crucial. Offering Debit card EMI sets you apart from competitors who may not provide this convenient payment option. With 67% of consumers agreeing to abandon their purchase if their preferred payment method is unavailable, it can be the deciding factor for customers choosing where to shop.
Setting up an EMI option for your ecommerce business is straightforward. Partnering with a payment service provider like Plural, can help streamline the implementation. Our Affordability Suite allows you to create offers easily across brands and banks so you give your customers the best. This ensures a smooth experience for your customers and tremendous growth for your business.
Competitive interest rates
The interest rates associated with debit card EMI are often competitive and attractive to customers. This can make your offerings more appealing, driving sales and customer satisfaction.
Offer debit card EMI via Plural’s Affordability Suite
When it comes to enhancing your ecommerce business, leveraging our Affordability Suite is a strategic move that can make a significant impact. The debit card EMI, one of its standard features, can be a game changer for your retail business, helping you meet your sales target year-round.
With our Affordability Suite, merchants can offer customers Cardless EMIs, Brand EMIs, bank EMIs, discounts, and offers on single-cart and multi-cart and in any combination! Brand EMIs bring your customers exclusive offers on select brands, making their shopping experience all the more enticing.
But the suite is not just about payments; it’s about offering more convenience and value to your customers. By integrating the Plural Affordability Suite into your business, you not only open doors to a broader customer base but also enhance loyalty and boost sales.
Contact us to learn more!
Amrita Konaiagari is a Marketing Manager at Plural by Pine Labs and Editor of the Plural blog. She has over 10 years of marketing experience across Media & Tech industries and holds a Master’s degree in Communication and Journalism. She has a passion for home décor and is most definitely a dog person.