Ecommerce merchants can now offer EMI to users who do not have credit card. The service is specially useful for high value transactions.
Bangalore based payments technology company, Cashfree has launched Cardless EMI facility for the consumers of its online merchants. The service is launched in partnership with ZestMoney. The service allows consumers to pay for their online shopping in Equated Monthly Installments. Until now, EMI facility for online shopping was only available to consumers who have a credit card. Since credit card penetration is low in India, it limited the target audience of online merchants.
Ecommerce sites selling high value items like Mobile phone, home electronics, travel etc. can now see influx of a whole new set of consumers due to facility of paying in monthly installments. Cashfree estimates that the service will reach out to 40 Million online shoppers through its platform over the next 12 months.
Lizzie Chapman, Founder of ZestMoney, said “We are targeting a new cohort of online consumers through our service and Cashfree is a perfect distribution partner for this. Together, we believe, we can increase the pie size of the online consumer economy significantly in India.”
Akash Sinha, Co-Founder and CEO of Cashfree, said “We are excited to bring Cashless EMI facility to our platform through ZestMoney. This new system will enable our merchant partners to sell high value items to more audience. This is in line with our commitment of launching innovative services to enable our merchant partners grow.”
Cashfree was founded in 2015 by IIIT Hyderabad graduate Akash Sinha and IIT Kharagpur graduate Reeju Datta. Cashfree is backed by payments pioneer, Paypal and the popular silicon valley accelerator, Y Combinator. There are currently 5000 online and offline businesses that use Cashfree’s platform to collect payments from customers or send money to users and vendors. It counts gaming site Zomato, Rummycircle, Google backed Dunzo, donation platforms like Ketto and Milaap amongst its popular customers.
ZestMoney was Founded in 2015 by Priya Sharma, Lizzie Chapman and Ashish Anantharaman. ZestMoney is the fastest way for people to pay using digital EMI, without the need of a credit card or a credit score.