A few weeks back, a friend, who was setting up his new apartment, was trying to buy furniture online. He implicitly trusted the brand, the products, and the website through which he was trying to buy the products. The transaction, well over Rs. 50000 ($800+), was in the checkout process flow and a “Buy on EMI” option caught his attention. Instead of paying the entire amount upfront, given all his other expenses on home renovation, he decided to avail this option. Once he selected that option, he was taken to a different page, possibly managed by a financial institution (NBFC), which gave him one of the following possible reminders –
So, what did he do? He opted out of that option, and completed his transaction using another funding method. Now, this gentleman is someone who probably earns more than Rs. 25-30Lakh per annum, has a solid credit history, and is overall, a good customer for almost all e-commerce guys. Should the NBFC be blamed? Only partly. A process is a process is a process. If risk & compliance are not given the importance they deserve, businesses sink faster than they can be built again. Yet, the new world of Digital Finance requires a Digital Mindset to Financing. And therein, lies an opportunity. What if -
Additionally, factor this – 70%+ of the transactions in the e-commerce space in India use “cash on delivery” as the preferred payment method. While the proportion is similar to or in line with the penetration of credit cards in India (<15MM unique credit card customers in a country with 600M+ unique cellphone subscribers and 150MM+ mobile internet users – by conservative estimates), the reasons can also be “trust” and “product/ service assurance” for COD. This is where CreditPotato comes into play. Our solution will aim to revolutionize B2C credit in the online world by making Digital Finance truly digital.(Image Courtesy: gizbot.com)