There is a lot of shopping on loan during festivals.
Navratri, Dussehra, Karva Chauth, Diwali, Dev Deepawali… then wedding season, Christmas and New Year, if we see the coming few months, everyone in the country will be seen immersed in the festive vibe. This is not limited to people only, but the prices of gold and silver, sales of e-commerce companies and shopping rush in the market all have the color of festive season, and the digital industry is going to be the biggest beneficiary. How?
Due to the festive season, the business of digital industry is increasing rapidly. Due to the sales held during this period, the number of digital transactions and digital lending is increasing. From digital payment companies to fintech companies, everyone is benefiting greatly from this.
Festive season shopping is being done with loan
Recently, e-commerce company Amazon started its annual sale ‘The Great Indian Festival’. The company says that during this period, 25% of the shopping orders placed on its site in India are orders which were placed on some kind of credit. Meaning, people have placed these orders by taking ‘Buy Now, Pay Later’, credit card or debit card EMI or ‘No Cost EMI’ option. Not only this, out of every 4 of these total EMI orders, 3 orders were made only with ‘No Cost EMI’ option.
See also: This is the mathematics of cashback in the festive season, is it really saving your money or a source of income for companies?
The business of fintech companies is increasing
Due to the facility of digital loan, now many fintech companies are in this field. The festive season is proving to be a profitable deal for them. According to ET news, the business of most fintech companies has seen a growth of 15 to 20 percent during this period. Digital payments in the country will be worth $106 billion in 2022. At the same time, the share of digital loans of fintech companies in this was 66 billion dollars. This is more than half of digital transactions.
Mumbai’s fintech company ‘Neo Growth’ is expected to disburse a loan of Rs 750 crore during October-December. At the same time, Paytm also sees a possibility of growth in its loan business. Similarly, ‘Flexi Loan’, a fintech company that provides loans to MSMEs, expects 50 percent growth in loan applications during the festive season. By distributing more loans, fintech companies will earn more interest and profits, which will overall prove to be a profitable deal for them.
Source: www.tv9hindi.com
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