When a customer visits your online store, getting to the checkout is just the beginning. The final decision to pay or abandon the cart often depends on how easy and affordable the payment looks. By offering EMI via a trusted payment gateway, businesses can make buying easier, more flexible, and more attractive.
| Table of Contents 1. What is EMI and How It works for Customers 2. Benefits for Businesses 3. What Types of EMI Should Businesses Offer 4. How to Implement EMI at Checkout 5. Conclusion 6. FAQs |
What is EMI and How It works for Customers?
EMI stands for Equated Monthly Installment. Instead of paying the full price at once, a customer can choose to pay in smaller monthly installments. This flexible payment option lowers the burden of a big lump-sum payment and makes expensive products feel more within reach.
With the right emi payment gateway, businesses can offer these EMI plans directly at checkout, whether it’s standard EMI, no cost EMI, or cardless EMI. This EMI solution gives customers more control over their finances and makes them more likely to complete a purchase.
Benefits for Businesses
1. More conversions through lower payment barriers
For many shoppers, the upfront price is the main reason they abandon carts. One big reason for cart abandonment is that customers don’t find a payment method they are comfortable with.
When EMI is available as a payment method, the perceived cost drops. A phone that costs ₹40,000 might look costly, but if split into EMI installments of ₹2,000 – ₹3,000 per month, it becomes more affordable. Offering EMI at checkout reduces price resistance, making customers more likely to complete the sale. This helps with conversion optimisation and brings in more orders.
2. Higher average order value and premium purchases
When customers know they can pay via EMI, they often feelless hesitant in spending more. Instead of choosing a basic model to stay within budget, they may opt for a premium version. EMI makes it easier to add accessories, bigger packages, or higher-end products, all because the discomfort of a big upfront payment disappears.
That ability to upgrade directly allow businesses increase average order value (AOV) without discounting or heavy marketing pushes.
3. More customers, including those without credit cards
In many markets, many potential customers don’t own a credit card. By enabling credit card EMI, debit card EMI and cardless EMI, businesses tap into a larger audience.
This means more of your site visitors become actual buyers, and not just those who already have credit cards. So offering a flexible payment option broadens your customer base.
4. Better user experience and less cart abandonment
Checkout friction, confusing payment pages, limited payment options, or long payment forms, often pushes buyers away. A proper EMI payment gateway that supports EMI eligibility, transparency and smooth checkout reduces friction.
With a smoother checkout and multiple EMI payment modes (credit card, debit card, cardless), customers are less likely to abandon carts, especially for high-value items, boosting sales and revenue.
5. Cash flow and settlement benefits for businesses
You might think that offering EMI means waiting for customers to pay monthly, but that’s not the case. With many payment providers and EMI solutions, businesses receive the full payment upfront from the EMI provider, even if customers are paying in installments. That means your business cash flow remains stable, while customers get the benefit of paying over time.
What Types of EMI Should Businesses Offer?
To maximize benefit, businesses should consider these EMI formats:
- Standard EMI via credit cards, traditional, well-known EMI format for cardholders.
- Debit card EMI – for customers who may not have credit cards but have a debit card.
- Cardless EMI, offered through lending or pay-later partners, where customers don’t need a card at all.
- No cost EMI, where the interest is absorbed by the merchant or bank, making installments equivalent to paying cash, very attractive to price-conscious buyers.
When EMI Works Best?
Offering EMI at checkout works best when:
- You sell medium-to-high value products (electronics, appliances, furniture, courses, services, etc.).
- Your target market includes younger buyers, first-time buyers, or anyone who may prefer to pay in installments rather than a single payment.
- You want to encourage customers to choose higher-priced products, add-ons, or premium variants.
- You aim to reduce cart abandonment and improve checkout conversion rates via conversion optimisation.
How to Implement EMI at Checkout?
To make EMI work well for your business, follow these steps:
- Pick a reliable payment gateway that supports EMI payment options (credit card EMI, debit card EMI, cardless EMI).
- Choose an established emi provider or lending partner that handles credit evaluation and installment processing.
- Display EMI/payment installments and eligibility clearly on product pages or checkout, show customers their monthly payment option, not only total cost.
- Offer varied EMI plans, maybe a no cost EMI plan, along with standard EMI, giving flexibility and affordability.
- Ensure frontend and backend integration so that checkout remains smooth, approvals are instant, and settlement (for you) is upfront.
- Monitor metrics: watch conversion rate, cart abandonment rate, average order value, and tweak EMI offers as needed.
Conclusion
By offering EMI at checkout, through a strong EMI payment gateway and EMI solution, businesses unlock multiple benefits: higher conversions, larger average order values, broader customer reach, and stable cash flows.
For merchants who wish to grow revenue and cater to budget-conscious customers, offering EMI isn’t just an add-on, it’s a smart growth strategy. With the right payment setup, EMI becomes a win-win, affordable for customers, profitable for businesses.
FAQs
1. Why should businesses offer EMI at checkout?
Offering EMI at checkout reduces price hesitation, improves affordability, increases conversions, and helps customers confidently purchase higher-value products without upfront payment stress.
2. What is no cost EMI and how does it benefit customers?
No cost EMI allows customers to pay in monthly installments without extra interest, making expensive products feel affordable and encouraging faster purchase decisions.
3. Does offering EMI affect business cash flow?
No, businesses usually receive the full payment upfront from the EMI provider, while customers repay in installments, ensuring smooth and predictable cash flow.
4. Who is eligible to use EMI payment options?
EMI eligibility depends on factors like bank partnerships, card type, credit profile, or cardless EMI provider policies, which are checked instantly at checkout.
5. Can EMI help reduce cart abandonment rates?
Yes, EMI and flexible payment options lower upfront cost pressure, reduce checkout hesitation, and significantly decrease cart abandonment, especially for high-value purchases.
