Flipkart projects EMI to drive one-third of festive electronics GMV
What happened
Gaurav Arora, Vice President of payments at Flipkart, stated that the company anticipates Equated Monthly Installment (EMI) options will account for roughly one-third of the Gross Merchandise Value (GMV) of mobiles and large electronics during the festive season. He also noted that nearly half of high-value electronics purchases are expected to utilize affordability options.
Why it matters
The expectation that affordability constructs will drive a large portion of high-value sales indicates a strong reliance on installment plans to boost consumer spending during the festive period. This suggests that payment methods are critical drivers of e-commerce revenue growth for Flipkart.
Who's involved
- FlipkartE-commerce company expecting high GMV growth via affordability options.
- Gaurav AroraVice President of payments at Flipkart.
- Axis BankIndian private sector bank supporting payment options.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FlipkartSpeculative
Flipkart might see an increase in sales volume driven by the use of EMI and affordability options during the festive season.
- Axis BankSpeculative
Axis Bank might see increased transaction fees and revenue from the successful push of EMI volume during the festive season.
- EkartSpeculative
Ekart might experience a massive increase in operational load and order volume due to the expected surge in payment requests.
Keep exploring
The entities involved
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Flipkart
Indian electronic commerce company
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Gaurav Arora
researcher
Nothing else this week.