Even as Amazon slows in India, Flipkart has started lending to customers, which could boost sales.
According to its app, the Walmart-owned Bengaluru-based firm, in partnership with Axis Bank, is lending up to 500,000 Indian rupees, or $6,100.
The app promises a smooth borrowing experience with no document submission and a 30-second approval time. The Indian Arc first noticed the service. Flipkart declined comment.
Flipkart now offers personal loans to complement its “buy now, pay later” option and co-branded credit card.
E-commerce giants that have partnered with Bajaj Finance and other lenders like banks have long recognized that a wider financing option is needed to address Indian customers’ frugality and credit aversion.
Financing reduces immediate burden, increasing transaction volumes and customer loyalty. These services encourage big-ticket purchases and staggered payments, increasing spending and revenue.
Flipkart’s financial services expansion into PhonePe’s territory is notable. After their split last year, competition has increased. PhonePe began e-commerce this year.