Flipkart has rolled out a ‘buy now, pay later’ option for select users. As per the company’s tweet to a user, the ‘Flipkart Pay Later’ option is currently available for select customers and the eligibility for this is decided by sellers on the platform. The company added that it is working with more sellers to expand this feature to other customers over time.” The development was first reported by VCCircle.
@Flipkart Why is it that some of my friends can see the Flipkart Pay Later’option while I can’t
— Amit kumar jain (@amitjain65256) June 19, 2017
As per Flipkart Support’s further Tweets, the total bill amount due for ‘Pay Later’ option is calculated on the 1st of the subsequent month and payable by 10th of the month. An SMS/email, or a push notification will be sent to users on the 1st of the month along with a link to make the payment. It currently supports payments via credit card, debit card and netbanking.
The VCCircle report added that the ‘Flipkart Pay Later’ option is available under the ‘My Account’ section on the app. The offer is applicable only to ‘Flipkart Assured’ products. The publication further reported that in the event of default, Flipkart will levy a penalty of Rs 100 for outstanding up to Rs 2,000, Rs 200 for outstanding of Rs 2,001-4,001 and Rs 400 for outstanding of Rs 4,001 and above and further default will lead to suspension of subsequent purchases from the account.
Pay Later option in other portals
Note that currently there are several companies like Simpl and epayLater that enable pay later options for customers through tie-ups with e-commerce platforms and food tech companies. The pay later option works similar to a credit card, where you get a credit period for making payments. Simpl has two billing cycles 1st and 16th of each month. The company has more than 30 merchant partners including NYKAA, JustRide, Faasos , BookMyShow, FreshMenu, Holachef , Voonik etc. On the other hand, epayLater counts IRCTC, PVR, Crownit, VaerOrganic, IndustryBuying, Power2SME, Tolexo, Bizong and Bizzgain as some of its merchants. Both the companies charge the merchants a commission for each transaction.
Funding and eBay buy out
In April this year, Flipkart raised $1.4 billion from Tencent, global e-commerce player eBay and technology company Microsoft. At the time, Flipkart Group was valued at $11.6 billion, down significantly from the previous valuation of $15 billion. Earlier this month, Flipkart got approval from the competition commision of India for acqusition of eBay India’s business. Along with investments made by eBay in April, the company also sold its India unit to Flipkart in exchange of equity in the company. eBay.in continues to operate as an independent entity which is owned and operated by Flipkart.