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This is because providers like cell phone manufacturers can provide interest subsidies on these swipe payments. According to Amrish Rau, CEO of Pine laboratories, which provides merchants with a payment platform, of the Rs.12,900 billion spent on its card readers in stores this October, around Rs.1,700 billion is against it EMI Payments.
The company has partnered with 30 banks and NBFCs that have already run an analytics application on their debit card base to determine the amount of credit to be made available to each cardholder. This enables Pine Labs to convert a large payment to EMIs using its Pine Pay Later application.
The platform enables vendors to subsidize loan rates by identifying the product serial number without being associated with the retailer. Up until now, a finance counter was reserved for large retail stores. The modest card reader has paved the way for the small traders.
At this year’s Navratri, consumer goods were sold against EMIs at points of sale (PoS) Machines made up 79% more than last year’s Navratri, while laptops were 44% more. Compared to pre-Covid levels (February 2020), consumer durable goods sales are nearly three times as high in October, while laptop sales are up 129% due to EMIs.
“The highest growth we saw during Navratri was in small regional retail stores and independent dealers. That also happens in non-metros, ”said Rau. For example, large organized retail chains saw EMI purchases grow 29%, while small retail stores and independent distributors saw 41% growth.
The states that grew more than 50% were Gujarat (81%), Madhya Pradesh (56%), and Rajasthan & Kerala (50%). Among the cities, Rajkot saw the highest growth (122%), followed by Vadodara (96%) and Surat (85%). “We are seeing tremendous interest from retailers in becoming part of the Pay Later platform. The highest growth has been seen in the two-wheeler segment, where EMI purchases are made by drawing cards. Other new segments are furniture and Wellness“Said Rau.
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