Online travel company MakeMyTrip has rolled out a ‘Pay Later’ feature for travel payments which currently will be available to select users. It has partnered with non-banking financial company (NBFC) Bajaj Finserv to enable this deferred payments feature.
This feature will allow customers to book a flight or hotel by just paying a fraction of the total cost. The rest of the amount can be paid later in instalments. The company said it’s in talks with various other fintech companies as it plans to scale up the feature across business lines and to all of its platforms including Goibibo and redBus.
MakeMyTrip CEO Rajesh Magow said in a statement that the company will draw from internal data such as purchase behaviour and related insights to help with this process.
Moneycontrol reports that, so far about 300-400 customers have been offered these loans. According to Magow, the average ticket size is not different from the regular ticket sizes.
MakeMyTrip currently provides access to all major domestic full-service and low-cost airlines operating in India and all major airlines operating to and from India. It also provides its customers access to over 45,000 hotels, 13,500 alternative accommodation properties in India and more than 500,000 hotels and properties outside India, Indian Railways and all major Indian bus operators.
Deferred payments: Others platforms
In July 2017, PayU owned LazyPay partnered with mass transit aggregator app Ridlr. This allowed Ridlr users to pay for their Mumbai local bus and metro rides using the pay later option. Users can make multiple pay later transactions via LazyPay and make the payment for all their tickets at one go, within 15 days from the date of the transaction.
Earlier this month, PayU announced it has partnered with Kreditech to launch a lending service in India that offers cardless EMIs up to Rs 1 lakh for purchases made online.
No-cost EMIs were introduced by Flipkart and Amazon last year, this allowed buyers to purchase items online and pay for them in instalments without incurring any additional costs such as interest or processing fee that is levied when buying via credit cards.
For the quarter ended December 31, 2017 (Q3 FY18), MakeMyTrip reported a net loss of US $45.3 million, as its profitability was weighed down by the increase of 144.6% in marketing and sales promotion expenses, which stood at $109 million, from $44.5 million in the same quarter last year.
Hotels and packages continued to be the majority contributor to MakeMyTrips’s revenue. Revenue from the segment stood at $83.8 million, up 136.4% from $35.4 million in the corresponding quarter last year. Gross bookings for hotels and packages stood at $367.8 million up 101.5% from $182.5 million in the same quarter last year, the increase was driven by the consolidation of the ibibo Group acquired in January 31, 2017. The total number of transactions stood at 3.2 million up 115% from 1.5 million in Q3FY18. On a sequential basis, it reduced from 3.5 million to Q2 FY18.