As you the know the world’s Largest Payments Network is VISA,It has discovered a new platform that will enable all the banks to offer the EMI facility to their users who holds debit cards for online transactions on E-commerce websites. Mr Arvind Ronta the Head of the VISA for India, “India there are 4.5 crore credit cards, and there are around 95 crore Debit cards across the country”. When coming to credit cards India has almost 2 crore Unique credit cards users, When the VISA agency estimated that 22 crore Debit cards users are Eligible for fresh credit Facilities said by ‘Arvind Ronta’
“This is a very first time a payments company is offering this kind of facility”. Both E-commerce websites have been providing this EMI facilities for the Debit card holders, These are especially based on One-to-One tie ups between the merchants and Banks by keeping this platform in between,Also VISA enables that any bank will sings up through API(Application Programming Interface)
Ronta said that first they will determine the Eligibility of the cardholder and tenure of credit, Credit underwriting will be only done by the respective banks. This will happens in seconds , The user will have a smooth and seamless experience with this while making any online transactions. This will really help every individual in making any online purchases or any online transactions.
These facilities are available for all Debit card issuers expecting the customers of payment banks,Which are barred from giving credit or overdraft options. EMI’s on Debit card will helps the banks to increase their (retail-lending) portfolio without the use resources for the distribution.
Flipkart and Amazon also offering this kind of facility to their customers to convert the payment in to EMI structure and they have a ti-up with all the banks to conversion of EMI. Ronta has said the they are “enabling their platform for all the participating issuers. “They are enabling scale and bringing in a consistent experience.Also removing the Operational complexity at their back-end”.
It helps thee customers who make online transactions through any website for shopping and etc. They can easily convert the full amount in to an EMI structure from this new VISA rule which they are about to launch shortly.