Before we talk about the role of Fintech industry in eCommerce, let’s take a look at some of the important points pertaining to current Indian eCommerce and technological trends:

  • 5 million credit cards were recorded active in March 2016.

  • Only about 10% of eCommerce buyers like to use plastic money to buy things online.

  • Remaining card holders are hesitant in uploading their card details on an online ecommerce portal.

  • National Institute of Transforming India (NITI Aayog) CEO Amitabh Kant stated that Cards, POS machines and ATMs may become redundant in India by 2020.


And now, let’s take a couple of scenarios in consideration to understand how these factors may affect the eCommerce industry.

  • A wants to buy a particular item from an online store. He wants to buy it on EMI basis, but he doesn’t have a credit card to do so, because majority of online stores provide EMIs only on credit cards.

  • B wants to buy an item on EMI, but the amount is lower than the minimum amount his credit card provider bank allows.


In both the scenarios mentioned above, the end result is an abandoned cart, and the e-commerce venture suffers a bounce, or a lower order value.

How does Fintech come into the picture?


Fintech companies such as ZestMoney have offered a way of paying for a purchase through EMIs, without needing a credit or debit card. When partnered with e-commerce websites, this particular payment method is proving useful from the viewpoint of maximum conversions and higher order value.

Real Life Examples:
ZEFO, a refurbished and unboxed product e-commerce platform, collaborated with ZestMoney witnessed a 35% increase in their sales, with twice the transaction size they had earlier, the ticket size grew by 120%.

In another instance, EMI Dukaan, an electronic gadgets eCommerce portal, included the similar payment method and the results were a ten times increase in monthly sales, more than 90% of buyers opting for premium mobile phones instead of budget phones, and their business now expanded to 4 more cities.

Another India based Fintech initiative, Kissht, which literally translates to Installment, also works on the same principle. They also let people buy things from online store that have integrated their payment method on their websites. Kissht also offers a mobile based app where all the collaborated vendors are shown.

So how does it help the marketplace owners, vendors and buyers?

See, it all boils down to the fact that with more sales happening on a portal, one gets to generate better revenue and a big user base. If a customer is able to buy something on EMI without needing a credit/debit card, they will be happy to proceed with the purchase not just once but repeatedly. Reduced bounce rates and lower cart abandonment instances are always good for business.

Fintech startups are not only helping end customers but vendors too in grossing more sales. Using this payment method, vendors are able to sell their products and get the said price without any hassle.


Customers, on the other hand, will be able to purchase things they want, and pay on a monthly basis.

There are many instances in the world when an innovation proved to be beneficial for masses alike. Fintech startups nowadays are focused on how to help eCommerce business generate more revenue and help them expand their business, while making sure they also offer vendors and customers some value. Enabling customers to buy things on installments without needing a card means their needs are met; vendors get to have better sales, while eCommerce marketplaces get to enjoy better revenues on each successful purchase. If this is not a 360 degree winning strategy, what will.

[box]Above is an authored article by Akash Singh who is a Digital Marketing Specialist at FATbit Technologies.[/box]

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.