Flipkart, the eCommerce giant based in India, is getting into the financial services industry with two new products.
According to a report in BGR, citing Gadgets360, Flipkart has launched two new services: Flipkart Finance and Flipkart Finance EMI. Both are offered as ways to pay for purchases, reportedly appearing when a user tries to convert a cash on delivery payment to another option. BGR noted that it didn’t spot that option when they tried it out, which could mean it is currently in test mode. The report noted that Flipkart does offer the Pay Later option, which allows users to make a purchase and pay for it at a later date.
While Flipkart hasn’t made any announcements on the payment front, BGR said it does mesh with a previous report in Business Standard, which reported that Flipkart was looking to get into the non-banking financial market.
The news comes as Flipkart is taking on Amazon in the Indian eCommerce world. Earlier this month, Reuters reported that the company was gearing up to roll out a second loyalty program, Flipkart Plus, which launched on Aug. 15, India’s Independence Day. The goal is to increase customer retention and to take on Amazon.com and its Prime subscription service. Under the program, customers will get free, fast delivery and early access to sales events, as well as an increased level of customer support.
In May, Walmart announced a deal to acquire a 77 percent stake in Flipkart for $16 billion. In a press release at the time, Walmart said once the deal was completed, the retailer would own 77 percent of Flipkart. The remainder of the business will be held by existing shareholders, including Flipkart Co-founder Binny Bansal, Tencent Holdings, Tiger Global Management and Microsoft.