Bajaj Finserv recently launched EMI Finance Online, a facility which lets existing customers convert their online shopping payment into easy interest free EMIs without using a credit card. Most customers of Bajaj Finserv possess an EMI card, which offers them the option of interest-free EMI payments. This new customer proposition aims at connecting retail stores to customers, for a more hassle-free payment process.

A customer simply needs to login into our online customer portal – Experia, either on their smartphone or through our website. EMI Finance Online provides special offers on smartphones. These offers would be intimated to the user once they have logged in to Experia. The biggest advantage of EMI Finance Online are:

  1. It allows users to convert their online payment in to easy EMIs
  2. The product is delivered to their doorstep within 4 hours
  3. Value Added Services such as data transfer, SIM cutting and much more.

Says Sapan Ghugre, Business Head – Digital Product Finance, “During the Diwali of 2014, the online players began to get aggressive with their pricing and promotion strategies. As a result of this, physical or offline sales and retail were impacted, as they couldn’t compete with the online sellers. Around June 2015, offline sales started dropping by almost 40%, as retailers were struggling to compete with their online counterparts”.

While the Bajaj Finserv EMI Card has a base of around 40 lakh customers, the card holders preferred to buy mobile phones online. This led to the conception of the EMI Online Finance. We started tying up with retailers of Samsung, Apple, and Sony products to provide phones to our customers.

Sapan says,” Version 1 is complete, and now 30 lakh customers can avail offers from retailers of mobiles, desktops, and tablets. We publish these offers on our Experia app. The customer places an order with the click of a button and our leads contact the retailer who calls the customer and informs them that the handset will arrive within 3-4 hrs. This pilot project has been successful, and we have delivered approximately 100 handsets to various customers who were delighted that they received their phone within 4 hours”.

‘Now the idea was great’, Sapan Ghugre reminisces, “but the challenge internally was building the platform. However the management has been very supportive and this is now one of our main projects to focus on next year. We are currently working on version 2, which will have a lot more features and should be delivered by April 2016. We’re looking to target approximately 50 lakh customers, and planning to sell at least 3 lakh products.”

Bajaj Finserv started with phones because it’s one of the fastest moving products in today’s world. Most retailers are shifting their businesses to online stores, and EMI Finance Online can grant them access to a larger pool of customers.

But Bajaj Finserv doesn’t plan to stop with phones. As Sapan Ghugre outlines, “Phone is the starting point and is the need of the hour, 40% of online sales are mobile phones and they got impacted the most. Phone happens to be the most aspirational priority for the customer as the most expensive phone is carried by very rich people which everyone else can also buy. It is an extension of human beings these days. We will start with furniture and maybe in the near future we want to sell homes also, as soon where we can tie up with builders and property dealers. The organization now is aligned and this is the biggest building block for the company as this unique initiative of ours is changing the way we do business”.

The way things are going, it looks like EMI Finance Online is set to make ripples in the digital market. Bajaj Finserv’s unique interest-free EMI payment option will certainly contribute to the success of this venture.