Consumer lending – A Move That Will Revolutionise The eCommerce Industry

With the coronavirus pandemic posing new challenges every day, the eCommerce industry is upgrading its financial model to offer maximum help to the customers. For example, the eCommerce giant Amazon has created an ‘Amazon pay later’ model to encourage people to buy from them. However, most people are still not much acquainted with the concept of instant credits, and only a small percentage of consumers use credit cards in India. As a result, the financial model has failed to create the wave it was expecting.

Indian customers are more into simplified online purchases that do not involve interest rates or loans on credit. Hence, many companies are now coming up with easy BNPL (Buy Now Pay Later) models to appease their needs. These latest BNPL models enable affordable options to pay for purchases later with little or zero interest rates. The people, who are in short of liquid cash at the moment, can thus get their regular supplies and pay later when they have the money. And this model is not only limited to eCommerce but also in other sectors to beat the economic crisis of the pandemic.

But in this post, we will discuss the effect of such consumer loans in the eCommerce industry only. Scroll on!

Can you pay for groceries and daily-use items later? 

Of course! Many online grocery shops in India are going the extra mile to stand by their customers in the crisis. By integrating grocery shopping on credit into their business model, they are helping people get essential items even when they are short on cash. From food items to cosmetics, all products fall under this scheme to make customers feel at ease while shopping. However, they need to make the payment within a specific period. But that is not a problem, as no one expects to get anything for free.

Who can benefit from this BNPL scheme?

The pandemic has increased the unemployment rate at all levels. While most formal workers still have some savings to rely on, the informal ones or daily wage workers are the worst hit by the pandemic. Although the situation is improving now, they are not getting regular work as they used to. These people can benefit from this new BNPL model to restock supplies and essential items, especially food. They can pay for the items as soon as they get their wages.

Another section of people who may benefit from this system are the elderly. For example, an elderly couple living alone, with their children working in some other city, may not always have the required cash to buy groceries. Further, the fear of COVID-19 may prevent them from getting money from the bank. If they need those supplies immediately, they need not wait any longer for the money to be delivered to their accounts. They can easily buy groceries on credit and pay for them later.

As more and more companies are taking up this approach, you need to find a reliable store that can fulfil all your needs. Compare the payment timelines of different stores and choose the one that seems to be the best option. Also, do not forget to read reviews while purchasing stuff online.