Ravichandran said that the company has adopted a three-pronged strategy to tap the fintech market in the country. This includes enabling frictionless payment at scale using data insights, distribution and technology, and enabling credit especially to tier-2 and tier-3 customers and helping them buy the aspirational products of their choice. It is also using innovative insurance technologies to give a “hassle-free” buying experience to the customers.
Flipkart massively ramped up the scale of its fintech offerings ahead of the festive season last year, to increase access to credit and affordability options for shoppers across the country. Constructs like ‘Flipkart Pay Later’ and ‘Cardless Credit’ opened up access to credit for 55 million Indians ahead of the festive season in 2019. Flipkart said these offerings are in-house fintech innovations, introduced to make the online shopping experience more seamless and affordable for Flipkart’s more than 200 million customers. ‘Flipkart Pay Later’ and ‘Cardless Credit’ grew more than 30 per cent in 2019.
“Driving credit access and penetration is very critical and core focus (for Flipkart) and we would continue to heavily invest in the next couple of years,” said Ranjith Boyanapalli, head of fintech and payments group at Flipkart. “The reason we are extremely confident and wanting to invest is that we have the right distribution and technology capabilities and the right insights to make this happen.”
Flipkart said its seller lending program, ‘Growth Capital’ grew 70 per cent in 2019, which has helped fuel the business aspirations of thousands of MSMEs (micro, small and medium enterprises) and sellers across the country.
The company also forayed into the insurance segment for the first time in 2018 with the ‘Complete Mobile Protection’ and launched ‘Complete Appliance Protection’ in 2019. The firm said these programmes have seen a phenomenal response from customers. During TBBD (The Big Billion Days) sale in 2018 and 2019, on average 1 in 3 appliances (mobiles, TV and large appliances) sold on Flipkart was with ‘complete device protection.’
Last month Flipkart unveiled the launch of Visa Safe Click (VSC), powered by Visa, the payments technology giant. VSC, a new payment solution now available on Flipkart platform, will enable the e-commerce platform to deploy India’s first in-app device-based network authentication solution. This solution will eliminate the need for ‘one time passwords’ (OTP) for transactions up to Rs. 2,000, while also ensuring a completely secure payment experience. Flipkart said it hopes to reduce the steps in the payment system. The aim is to help consumers complete their purchase journey with ease, primarily in regions where internet connectivity and e-literacy are scarce.