EMI, a word we have heard and used numerous times while transacting or shopping, is not new to us. However, the usage of the term has increased by leaps and bounds in the recent years. Clearly, there has been a rapid shift in India’s customer behaviour. With the demand for a better lifestyle and access to everything that’s best, more and more people are gradually turning to this payment mode. However, we also cannot overlook the fact that dipping income during COVID-19 gave a major boost to this payment mode. In fact, in the year 2020, right after the pandemic hit India, EMI and cardless EMI witnessed a massive growth of 125% and 178% respectively. With the growing importance of this payment mode, it is important to understand what is EMI.
What is EMI?
It basically stands for equated monthly instalments. As self-explanatory as the word is, it basically allows the buyer to buy a big-ticket product or service without the requirement of immediate and complete payment. How, then, does the buyer pay? It’s simple, the buyer pays back the amount of purchase in comfortable monthly instalments instead of having to pay the entire amount upfront. This right here is the main appeal of this payment mode. Not only does the buyer get what they want but they can choose to pay over a few months, as per their comfort.
Now, that we know what is EMI, the question that comes to mind is how EMI works to help your business.
How does EMI help you as a business?
Here are a few ways in which activating EMI at your checkout will help you boost your business:
Increase consumer affordability: As a brand, you would provide all kinds of products or services that you can. Some are big-ticket while others are small-ticket. While most buyers take little to no time to purchase small-ticket items, they would definitely consider a variety of factors before investing in something that’s expensive. In such a scenario, the best way to enhance your customer’s affordability is to give them respite when it comes to paying you for the product. This is exactly what EMI does. This is an ideal way to delight your customers by making your big-ticket items affordable and attainable for them.
Reduce cart abandonment: In continuation to the above point, when a buyer is unable to afford a certain product, they are bound to abandon their cart. This impacts your business in terms of conversion and revenue. But what if the buyer can choose to pay in instalments? In that case, your buyer will reconsider their purchase decision as paying in installments will help them gratify themselves and also ensure that they don’t invite financial burden as a result of the purchase.
Increase conversions: As mentioned above, once you have made yourself affordable to your buyer, conversions are bound to increase. This will ensure dipping cart abandonment rates and ensure that every customer journey on your platform is taken to completion.
Increased revenue: Needless to say, once your conversions heighten, it automatically enhances your revenue. Now as a business that wants to prosper and sell nothing but the best, this is a win-win situation for you wherein not only does your customer become more loyal and makes repeat purchases but also you as a business witness escalating revenues.
Now you know the many ways in which EMI activation is bound to help your business soar.
So, wait no more and activate EMI today!
Frequently Asked Questions
Yes, you get paid the entire amount of purchase upfront even when your customer chooses to pay in monthly instalments.
No, your business doesn’t incur any loss in this scenario as you are already paid the complete amount. Instead, the loss is borne by the bank in this case.
Yes, buyers can avail offers on EMI payment at checkout.