India’s digital commerce market is undergoing a significant transformation. With more people shopping online than ever before, businesses are reevaluating their approach to customer interaction, particularly at the point of Indian payment gateways.
One of the biggest shifts we’re seeing is in India’s payment gateways, particularly in the rise of flexible payment options, such as Equated Monthly Instalments (EMI) and Buy Now, Pay Later (BNPL). These aren’t just trendy financial tools; they’re becoming strategic assets for e-commerce businesses seeking to boost their sales and offer smoother checkout experiences.
For both merchants and customers, the appeal is clear: EMI and BNPL options remove the upfront cost barrier, giving people the flexibility to pay at their own pace. But what does this really mean for businesses? And how can you tap into these growing trends to fuel your company’s growth? This blog explores how payment gateways in India are facilitating EMI and BNPL options for higher cart values.
The growing demand for payment flexibility
Over the past few years, the Indian e-commerce market has experienced incredible growth, with considerable room for further expansion remaining. According to projections, the market is expected to grow to $345 billion by 2030. That kind of growth doesn’t happen without some serious innovation, and flexible payment options are playing a huge part in that.
The idea behind EMI and BNPL is simple. Rather than paying the full amount upfront, customers have the option of either breaking up their purchase into manageable monthly payments (EMI) or delaying payment for a period (BNPL), often with little or no interest. For many shoppers, especially those making high-ticket purchases, this kind of flexibility is a game-changer.
In a country as diverse as ours, varied spending habits make multiple payment methods not just useful, but essential.
Why do EMI and BNPL matter to merchants?
From a merchant’s perspective, offering EMI and BNPL isn’t just about being nice to customers; it’s also about increasing sales and revenue. It’s a smart business move. These payment models make it easier for people to say “yes” to larger purchases, resulting in higher Average Order Values (AOV) and improved conversion rates. That translates directly into revenue growth.
More importantly, these options can help reduce cart abandonment, a significant pain point in e-commerce. Consider how many customers hesitate at the final step of a purchase simply because they’re unsure about the immediate cost. With EMI or BNPL, that hesitation can disappear.
How are payment gateways supporting this shift?
Today, leading payment gateways in India are stepping up to make flexible payments easier than ever to implement. They’re designing comprehensive platforms with over 100 payment options, including EMI and BNPL, customised for smooth, hassle-free online integration.
These platforms come with user-friendly dashboards, solid API support and technical documentation that even smaller businesses can understand. Whether you’re a large e-commerce retailer or a local D2C brand, you can get set up quickly and start offering your customers better payment choices almost immediately.
The rise of BNPL in Tier II and Tier III cities
EMI is more popular among those with credit cards or strong banking relationships. BNPL, on the other hand, appeals to younger shoppers and individuals in tier II and III cities, where access to formal credit is limited.
With BNPL, customers can buy and either pay within a set period (such as 15 or 30 days) or split it into multiple installments, often interest-free. This model opens up a whole new customer base, comprising people who want to buy but lack traditional credit options.
Leading Indian payment gateways now integrate with multiple BNPL providers, allowing businesses to offer a range of payment options. The more options your customers have, the better the chance they’ll find something that suits them, and that means they’re more likely to complete their purchase.
Sweetening the deal: Offers, cashback and discounts
One reason EMI and BNPL work so well is that they’re often bundled with cashback offers or promotional discounts. Some payment gateways enable merchants to offer limited-time promotions, where customers receive instant rewards for using flexible payment options.
This isn’t just a gimmick; it’s a proven tactic. Cashback and discounts at checkout can encourage undecided buyers to complete a purchase. And if they’ve had a good experience once, they’re more likely to come back.
Security and compliance: A non-negotiable
Let’s not forget about security. With financial transactions, there’s no room for error. Leading Indian payment gateways are fully compliant with PCI-DSS standards and adhere to RBI guidelines, ensuring that all transactions are encrypted and secure.
Customers want to know their data is safe, especially when using newer payment methods. By working with established gateways, you can offer that peace of mind and build trust in your brand.
Real business impact: What the numbers say?
What kind of results are businesses actually seeing from adopting EMI and BNPL?
- A boost in average order value: Larger purchases feel more manageable with flexible payment options.
- Lower cart abandonment: When customers see EMI or BNPL as an option, they’re more likely to complete the purchase.
- Stronger customer loyalty: Convenience matters. The easier it is for people to buy from you, the more likely they are to make repeat purchases.
Looking ahead: Why is this just the beginning?
Whether you’re selling smartphones, furniture or fashion, giving customers the ability to pay on their terms can set your business apart. If you haven’t explored EMI and BNPL integration yet, now’s the time. Partnering with a trusted online payment gateway, such as Pine Labs Online, can simplify the entire process and help you tap into a larger, more diverse customer base.
The future of e-commerce in India is characterised by flexibility, inclusivity and a customer-centric approach. By embracing smart payment solutions, you keep your business well-positioned for long-term success.
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