Debit card EMIs have shown significant growth, with a nearly 25% contribution to the total EMI volumes. Offering flexible payment options is essential for attracting and retaining customers in e-commerce and retail. One such innovative payment solution is the Equated Monthly Instalment (EMI) through a debit card.
Your customers don’t have to miss out if they have debit cards. While traditionally associated with credit cards, EMI through debit cards has the ability to enhance customer purchasing power and drive sales. Let’s explore the numerous benefits of offering EMI through a debit card.
Understanding EMI Through Debit Card
EMI through debit cards allows customers to convert their purchases into manageable monthly instalments, paid directly from their bank account. This system functions similarly to credit card EMIs but eliminates the need for a credit card. For merchants, this payment option can significantly impact sales, customer satisfaction, and overall business growth.
Key Benefits of EMI Through Debit Card
To fully capitalise on the advantages of EMI through debit cards, it’s essential for merchants to understand its key features. These features are designed to streamline transactions, enhance security, and improve overall business efficiency.
1. No/Low-Cost EMI Options
Offering no or low-cost EMI options can entice customers to make larger purchases without the burden of interest. This feature allows merchants to cater to price-sensitive customers, increasing the likelihood of high-ticket sales and improving conversion rates.
2. Accessibility for Debit Card Users
With a vast number of active debit card users, particularly in markets like India, offering EMI through debit cards opens up a significant customer base. This accessibility can drive more sales by allowing a broader range of customers to afford products that they might otherwise find financially out of reach.
Merchants can offer customisable EMI plans tailored to their customers’ needs. These plans can vary in duration and monthly instalment amounts, providing flexibility and making it easier for customers to manage their finances.
3. Instant Approvals
EMI through debit cards often comes with instant approval processes, enabling customers to complete their purchases quickly. This efficiency reduces cart abandonment and enhances the overall shopping experience, leading to higher customer satisfaction and loyalty.
4. Higher Conversion Rates
One of the most significant benefits of offering EMI through debit cards is the potential for higher conversion rates. By providing flexible payment options, merchants can reduce the financial burden on customers, making it easier for them to complete their purchases. This flexibility can lead to increased sales and a lower rate of cart abandonment.
5. Widened Customer Base
As per Reserve Bank of India (RBI) data for March 2021, there were 898.2 million debit cards in India as compared to 62 million credit cards. EMI through debit cards allows merchants to tap into a vast pool of debit card users who might not have access to credit cards.
This inclusivity expands the potential customer base, enabling merchants to reach a wider audience and drive more sales. This approach is particularly effective in regions where debit card usage far exceeds credit card penetration.
Modern payment solutions also provide easy integration and setup for EMI through debit card options. Merchants can quickly incorporate this payment method into their Point-of-Sale systems to minimise disruptions and ensuring a smooth transition.
6. Reduced Cart Abandonment
High cart abandonment rates are a common challenge for e-commerce merchants. By offering EMI through debit cards, merchants can alleviate the financial concerns that often lead to abandoned carts. The ability to pay in instalments makes high-value items more accessible, encouraging customers to complete their purchases.
Flexible payment options like EMI through debit cards can also encourage customers to spend more per transaction. By breaking down the total cost into manageable monthly payments, customers may be more inclined to add higher-value items to their cart, thereby increasing the average order value and boosting overall revenue.
Unlocking Opportunities
Offering EMI through debit cards presents a myriad of benefits for merchants looking to enhance their payment solutions and drive business growth. By integrating this flexible payment option, merchants can tap into a broader customer base, improve cash flow management, and gain a competitive edge in the market.
If you are looking for a reliable payment gateway that supports the debit card EMI option, you should check out payment solutions like Plural. They offer the convenience of debit card EMI directly at the Point-of-Sale, providing a seamless shopping experience for customers.
