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Gift cards companies are offering BNPL on gift cards to expand their market share in India

Gift cards companies are offering BNPL on gift cards to expand their market share in India

Gift cards companies are offering BNPL on gift cards to expand their market share in India

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Buy now, pay later (BNPL) industry in India is set to surge with the rise of e-commerce, and, with a vast population, this market will thrive in 2022. The online shopper gets attracted to this payment method as they can enjoy the product immediately together with the option of availability of interest-free credit. Many sectors have started to enter the BNPL space to capture the market and reap the benefit.

Like all other industries, pandemic-led digitization has provided a significant boost to the gift card industry. Companies have witnessed tremendous growth during the festive season, and e-gift cards were the sole answer to the occasions. To target more customers, gift card companies have now started to provide interest-free credit for buying gift cards.

Qwikcilver has launched the no-cost EMI option on e-gift cards from June 2021. This facility is available on the company's website and mobile application. The consumer can select the EMI option at the checkout and pay using either a credit card or debit card. The customer can opt for the no cost EMI payment option on a gift card for a minimum order of INR 4000 and above with a credit card of the company enlisted banks. The customer can send these e-gift cards to their loved ones through SMS, Email, and WhatsApp from its website.

Presently, the company offers gift cards from various brands, such as Lifestyle, BigBasket, World of Titan, Central, Westside, Ray-Ban, Pantaloons, and many others. Whenever the purchase is made, all the products of these brands become available to the customer at No Cost EMI. The company is subsidizing the interest rate charged by the banks, and, thus, the customer will pay only the gift card amount over the installment period. Qwikcilver has taken an innovative approach to put the high-end brands under one umbrella with the No Cost EMI option, which will help to increase the customer base of the company and enjoy its share of profit.

Even neo banks are approaching this space to grab a share of the pie. StashFin, a neo-banking platform, launched BNPL on e-gift cards in December 2021. The e-gift card allows the customer to track the best deals during the festive season and the option to repay via installments. The StashFin e-gift card store enables the customer to access the best offers from almost 80 brands of online shopping, retail, utilities, and many others.

The customers can access the new e-gift cards on the company’s mobile app or website. Moreover, they can redeem the offers and discounts at online and offline stores. The company provides the option of repayment in two interest-free installments within 30 days to those customers who bought an e-Gift Card worth up to Rs. 5000. The company delivers the gift cards via SMS and email for instant redemption at the outlets and digital stores. According to the company, it targets mainly the unbanked population and those with limited credit history by providing them with convenient repayment options.

To know more and gain a deeper understanding of the gift card market in India, click here.

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