D2C founders know the situation well. A shopper visits the website, checks out a few products, adds one to the cart, and then leaves at the payment stage. It’s not always because they changed their mind. Sometimes, the total amount is simply more than they want to pay upfront. A ₹6,000 purchase, for example, can make a shopper pause before placing the order.
This is where flexible payment options such as Pay in 3 can help. Instead of paying the full amount at once, shoppers can spread the cost across three payments. But how does Pay in 3 compare with traditional credit options such as credit card EMIs?
Why Traditional Credit Does Not Work for Every Shopper
Online stores have long used credit card EMIs to make expensive products easier to afford. But they are not an option for every shopper in India.
- Not everyone uses a credit card: Many online shoppers either don’t have one or prefer not to use it for purchases.
- The payment process can feel lengthy: Entering card details, passwords, and OTPs can add a few more steps at checkout.
- Additional charges may put shoppers off: Interest or processing fees can make people think twice, especially when they are already unsure about spending a larger amount.
When a suitable credit option is not available, some shoppers choose COD instead. But for brands, a higher number of COD orders can also lead to more RTOs and delays in receiving payments from successful orders.
How Pay in 3 Works for Shoppers?
Flexible payment options like Pay in 3 give customers another way to pay for a purchase. Instead of paying the full amount in one go, they can split it into three zero-cost payments through UPI.
Customers also do not need a credit card to use this option. The process can be completed through a quick digital verification using their mobile number.
Here’s what this can mean for shoppers and brands:
- No credit card required: Customers can use UPI to make the payment and split the amount into three parts.
- Less to pay at once: Paying in parts can make a bigger purchase easier to go ahead with. A customer who is unsure about paying ₹9,000 at once may feel more comfortable splitting the amount.
- A possible alternative to COD: Some customers who would normally choose COD may prefer splitting the payment instead. This can help brands bring down their dependence on COD and avoid some of the RTOs that come with it.
Pay in 3 vs Traditional Credit Card
Here’s how the two payment options compare:
| Feature | Traditional Credit Card EMI | Pay in 3 via UPI |
| Who can use it? | Mainly shoppers who have a credit card | More digital shoppers who already use UPI |
| At Checkout | Requires card details, CVV, and OTP | Uses mobile number verification, with no card needed |
| What customers pay | May include interest or processing charges | Split into 3 payments at 0% interest, with no extra charges |
| For merchants | Reaches fewer shoppers and can still lead to COD orders | Gives customers another way to pay, which may help reduce dependence on COD and RTOs |
Should Your Store Offer Pay in 3?
If your store mainly serves customers who already use credit cards, regular card EMIs may be enough. But if you want to reach more shoppers, reduce COD-related losses, and help more customers complete their purchases, a short-term split payment option can be a better fit.
Make Flexible Payments Work with Snapmint
Payment options can play a part in whether someone completes an order or leaves the site. For higher-priced products, paying the full amount at once may be the reason a shopper decides not to buy.
Snapmint offers 0% EMI through UPI, so shoppers can split their payments without using a credit card. It works with over 2,000 D2C brands and offers instant cardless approvals at checkout. Merchants receive the full payment in their account within T+2 days.
Want to add flexible payment options to your checkout? Talk to Snapmint and see how it can work for your store.
