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Flipkart has begun lending to customers, expanding its financing offerings in a move that could potentially boost sales even as its chief rival Amazon has signalled a slowdown in India.<\/p>\n
The Walmart-owned Bengaluru-headquartered firm, in partnership with lender Axis Bank, is extending a credit of up to 500,000 Indian rupees, or $6,100, according to a description on its app.<\/p>\n
The loan, requiring no document submission and boasting a 30-second approval time, promises customers a seamless borrowing experience, the app says. The service was first spotted<\/a> by Indian news outlet the Arc. Flipkart declined to comment.<\/p>\n By introducing personal loans, Flipkart expands its financial services portfolio, which already includes a \u2018buy now, pay later\u2019 option and a co-branded credit card.<\/p>\n E-commerce giants, that have partnered with Bajaj Finance and other lenders like banks over the years, have long realized that a broader financing option is required to address the customer\u2019s frugality and credit aversion in India.<\/p>\n A financing option reduces immediate burden, thereby promoting higher transaction volumes and bolstering customer loyalty. By empowering consumers to make big-ticket purchases and stagger payments, these services boost spending, driving significant revenue growth.<\/p>\n Flipkart\u2019s deeper dive into financial services is noteworthy, as it encroaches on even more of the territory held by PhonePe, a former subsidiary.\u00a0After their separation last year<\/a>, competition between the two has intensified. PhonePe made its entry into e-commerce<\/a> earlier this year.<\/p>\n<\/p><\/div>\n