BlinkIt brings EMI option for orders over Rs 2,999

Blinkit, the quick commerce platform, has introduced an EMI (Equated Monthly Installments) option for its customers, allowing them to split payments for purchases over Rs 2,999. This option will be available on all orders except those containing gold and silver coins.

The new EMI feature is part of Blinkit's strategy to expand its customer base and drive more significant purchases on its platform. With a growing number of consumers relying on quick commerce for grocery, household items, and more, this option can make larger orders more accessible. 

By enabling consumers to spread payments over time could also lead to higher-value transactions, as per experts tracking this space.

Currently, it has tied up with several banks such as HDFC, SBI, ICICI, Kotak Mahindra, Axis, RBL and CITI Bank to provide EMI options via credit cards.

For Blinkit, introducing EMI as a payment option aligns with its focus on scaling up and increasing customer loyalty. Quick commerce is highly competitive, with companies like Blinkit, Swiggy Instamart, and Zepto all vying for market share. By facilitating such transactions, Blinkit aims to increase its average order value, a key metric in its growth strategy.

Early this week, Blinkit launched the Seller Hub to enable brands to manage their presence on the platform independently, without needing intermediaries. Over 200 brands already have access, the platform offers tools for brands to control their quick commerce operations efficiently. 

Blinkit has emerged as a leader in the quick commerce space, and recently, HSBC valued it at around $20.8 billion, more than twice the valuation of its parent company, Zomato, which was valued at $9.2 billion by the banking firm.

An EMI option, through third party lenders, is one more way to eke out margins in the tough e-commerce business. Not to mention that it might deter some deal seekers to stick with Blinkit just for the convenience of the EMI. So improved margins here too.  With the wider portfolio of products like gold and mobiles etc that has been added, an EMI option was a natural progression, one could argue.  So what could go wrong? Other than the typical initial costs of processes for the added feature, not much, one would imagine, with a very strong upside if it takes off well. In which case, it will not be a unique offering for too long in any case.