This is being done to target that section which does not have a credit card and cannot access EMIs on debit cards.
Along with lending, the company is firming up its plans to enter the insurance space and wants to start selling insurance in India as a corporate agent.
Having partnered with Bengaluru based digital lending startup Capital Float, the company is starting off easy EMI options for purchases on its ecommerce platform for a particular group of customers.
Vikas Bansal, director, emerging payments at Amazon Pay, said that the company’s goal is to target the next 70 million customers who are deprived of credit options while shopping on Amazon, so they can be significantly benefitted by these EMI options. Bansal added that while the size of the population doing online shopping in India is around 100 million, around 20 million have credit cards and another 10 million use either Bajaj Finance or debit card EMIs.
Amazon is said to be offering zero cost EMIs for customers taking the loan for a duration of three and six months. For those opting for the duration of nine and 12 months the rate of interest will be 18%. While offering a complete digital onboarding process, it will also allow Amazon customers to track their repayment history on the Amazon Pay dashboard thereby boosting their convenience.
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