Flipkart launches Cardless Credit facility ahead of Big Billion Days sale

E-commerce giant Flipkart has announced a new payment option, called Cardless Credit by which it offers the same 'up to Rs. 60,000' instant credit.

New cardless credit system
is meant to “simplify access to credit in real time while simplifying credit assessment and application process,” the company said in a statement. 

Ravi Garikipati, Sr. VP and head of Fintech Flipkart, said, "Cardless Credit comes into existence as we understand that close to 45 million customers on Flipkart do not have access to credit, not that they are not entitled to. Amongst consumers, there could be gap in terms of purchasing power but the gap is not in ambition and quality that they want to own. The challenge is of affordability and that is what we are trying to solve. Cardless Credit will have potential customers including the emerging middle class mobile active borrowers who do not have access to credit cards or credit limits. We will leverage the understanding of these customers' shopping behaviours and offer credit underwriting in a simple and transparent way, to make their shopping experience affordable."

Flipkart says the process to apply for an instant credit line up to Rs. 60,000 takes 60 seconds, and the amount of credit awarded is based on customer behaviour on Flipkart. During checkout, buyers will get access to two propositions: Pay Later next month, or EMIs of 3-12 months. Users will have the option to checkout without OTP for values less than Rs. 2,000. Those who opt for the former will have to pay the due amount back using their debit card or net banking.