Why your business should offer instalments (EMI):- www.deekpay.com

The term instalment payment (EMI) is not new to us and we have heard and used it many times during shopping or transactions. In recent years, the use of this term has grown by leaps and bounds. Clearly, the behavioural patterns of Indian consumers are shifting rapidly. With the quest for a better lifestyle and the best items, more and more people are gradually turning to this mode of payment. At the same time, we can't ignore the fact that the drop in income during the epidemic has significantly fuelled the growth of this payment method. In fact, after the 2020 epidemic hit India, EMIs and cardless EMIs realised a growth of 1,251 TP3T and 1,781 TP3T respectively. Given the growing importance of this payment method, it is particularly important to understand the implications of EMI.

What is EMI?

EMI, or Equalisation of Instalments, as the name suggests, allows buyers to purchase high-value goods or services without paying the full amount immediately. So how does the buyer pay? It's actually quite simple, the buyer spreads the purchase amount over a few months in comfortable instalments instead of paying the entire amount in one go. This is the main attraction of this payment method. Not only do buyers get what they want, but they also have the option to pay for it over several months at their own comfort level.

Now that we know what EMI is, the next question is how EMI can help your business.

How can EMI help your business?

Here are some ways in which activating EMI at your checkout will help you boost your business:

Increase Consumer Buying Power: As a brand, you offer a variety of products or services, some of which are big-ticket items and some of which are small-ticket items. Most buyers will have little hesitation in purchasing small items, but will consider a variety of factors when investing in expensive items. In such cases, the best way to increase the purchasing power of your customers is to give them relief in paying for the product. This is where EMIs come into play. It is the ideal way to please customers by making commodities affordable and accessible.

Reduce Cart Abandonment: Continuing the above point, when a buyer can't afford a certain product, they are likely to abandon their cart. This can have an impact on your business conversion rates and revenue. But what if buyers have the option to pay in instalments? In this case, your buyers will reconsider their purchasing decision, as paying in instalments will help them meet their needs while ensuring that they don't incur a financial burden as a result of their purchase.

Increase conversions: as mentioned above, once you make buyers feel like they can afford to buy, conversions will naturally increase. This will ensure that shopping cart abandonment rates drop and that every customer journey on your platform is completed successfully.

Increased Revenue: It goes without saying that once your conversion rate increases, revenue will increase accordingly. For businesses that want to prosper and sell only the best products, it's a win-win situation; not only do customers become more loyal and make repeat purchases, but you as a business will see your revenues continue to climb.

Now you understand how activating EMI will help your business take off.

So, don't wait any longer and activate EMI immediately!

common problems

How many types of EMIs can I activate for my customers? You can activate all types of EMIs through PayU, including interest-free EMIs, debit card EMIs, and credit card EMIs.

Will I receive the full amount if the consumer opts for EMI as a mode of payment? Yes, even if your customer chooses to pay by instalments, you will receive the full amount of the purchase immediately.

Will I suffer any loss or damage if the buyer does not pay the instalment on time? No, in this case your business will not suffer any loss as you have already received the full amount. Instead, the loss will be borne by the bank.

Will my buyers be able to avail EMI benefits at the time of checkout? Yes, buyers can avail EMI payment benefits at the time of checkout.