E-commerce platforms like Amazon and Flipkart are doubling down on their 'buy now pay later' or embedded lending options for consumers given that over the past year, such credit product options have exploded as transactions on e-commerce websites gained greater ground over physical retail stores. The e-commerce players are also looking at partnering with banks and non-bank lenders to extend flexible and innovative financing options for their merchants and sellers on their platforms. While banks have enabled BNPL (buy now, pay later) options and equated monthly instalment (EMI) options on debit cards and credit cards at the checkout point on e-commerce platforms, such options are only available to existing customers who have a good credit history. According to the e-commerce players, speaking at the Digital Lenders Association of India’s 2021 Conclave, by enabling BNPL and EMI payment options first time borrowers or new-to-credit customers are able to access micro-credit or small ticket loans to fund their purchases across a range of products. "While EMI products are enabled by third-parties and function at scale, the problem is that banks or credit card companies keep changing the terms and conditions and eligibility criteria. On the other hand, Amazon Pay Later helps us engage with customers more in terms of repeat buying and utilising the credit limit for multiple products," said Vikas Birthire, product lead, Amazon Pay Later. He said that customer engagement and purchases actually increases through BNPL or embedded lending options compared to options provided by traditional lenders. "If a customer…
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