Flipkart Is Working On Technical Stack To Offer Instant Credit To Customers

The Bengaluru-based e-commerce company Flipkart is developing a solution called Know Your Customer to bring the instant credit service to its customers on its online shopping platform after the Supreme Court nullified Aadhaar e-KYC that aims to private companies in 2018.

To expand its market to digital financial services, Flipkart has collaborated with many small Fintech companies to activate “cardless credit” and help customers make payments conveniently. At present, the company is planning to begin the lending programme one more time and allow its customers to make a line of credit (LOC) which are approved in advance.

The Flipkart VP of Fintech and payments Ranjith Boyanapalli said, “I think applying for an NBFC licence is a natural progression to enable credit for our customers and we’re committed to moving in that direction.” However, he didn’t indicate whether the company applied for a licence issued by the Reserve Bank of India for non-banking finance companies or not.

There have been about 10,000 participants in the Flipkart project to develop digital KYC. In a few of next weeks, more customers will have a chance to experience the service on the Flipkart platform.

The Flipkart’s Director Engineering Suyash Motarwar said,

The major purpose Flipkart has looked for an alternative to eKYC of 2018 is to boost lending in its digital format. Up to now, 12 lakhs customers borrowed from the company via its partners. In addition, it is completing the exclusive credit underwriting models built from the data of customers. According to Motarwar,

The company has also observed data points from 500 to 1000 to determine whether a customer can pay loans back or not.

Among Flipkart’s Fintech collaborators, the two most prominent names include ZestMoney (provides EMI purchases when customers make online transactions) and Kissht (provides cardless EMIs for customers).

According to a founder of the digital lending programme,

The Flipkart Vice President Boyanapalli added,

In India, there are now 4.5 crores credit cards and up to 93.1 crores debit cards. The data was collected by the central bank.