The most common grouse of youngsters shopping online is that they don’t have a credit card. Since they don’t have a credit card, they don’t get access to credit even though they may be a credit-worthy borrower. Online shopping sites have been listening and that is why e-commerce giants like Amazon and Flipkart have solved the problem. The solution: Cardless credit. Timing wise this is perfect, because up ahead are a raft of festivals and the consequent shopping season. By eliminating the plastic card, cardless credit does the basic job of giving credit effortlessly. So, it doesn’t matter if you have a credit card or not. Let us have a close look at the options.
How Amazon Pay EMI works
This cardless credit facility offers an EMI of up to Rs 60,000. The tenure of credit is 3 to 12 months for any purchase made through Amazon.in. Customers do not require a credit card to avail this facility. Aadhaar number, Voter ID or PAN number is needed to avail the cardless EMI. Do note that Amazon has made this feature available only on the mobile app. So, if you are a desktop savvy person, wait for the news. There are no processing fees or hidden charges of any kind, Amazon claims. Let us know if your experience is different.
According to reports, the feature is applicable only on single item buys of over Rs 8,000 without an exchange offer. Lenders like Canara Bank, Citi Bank, HDFC Bank, ICICI Bank, and Kotak Bank support this facility. The customer’s credit limit is decided by the lending institution. To purchase using the Amazon Pay EMI facility, ensure the product is available on EMI.
How Flipkart Cardless Credit works
Flipkart already had its Pay Later, No Cost EMI and Debit Card EMI. But Cardless Credit from Flipkart takes this one level higher. With Flipkart Cardless Credit, you can avail instant credit up to Rs 60,000 to shop for anything that has caught your eye. Simply choose this as a payment option when you proceed to check out and don’t worry about making a down payment either. Flipkart claims one doesn’t have to wait for approval or worry about any maintenance charges because the credit is yours for the taking in just 60 seconds.
You can repay the amount in two ways. Either repay the entire sum the next month or pay in EMIs ranging from a period of 3 to 12 months. No Cost EMIs are available with Flipkart Cardless Credit too. Please note that the facility is currently available only on the Flipkart mobile site and the Android app. You need to give your PAN details, Aadhaar number and verify your Aadhaar using an OTP sent to your registered mobile number.
Surely, this is a good way to sidestep the problem of credit card penetration to some extent. As the shopping sites are likely to use analytics to find the customers who are eligible for credit, it’s unlikely to be a free flow of credit. Meanwhile for those who have credit cards, they can still avail of credit without really blocking that much amount on their credit cards.