Ways to offer EMI without credit cards to consumers

Key Takeaways

• There are 5 times more UPI users than credit card users in India. With around 100 million Indians using credit cards, its penetration is low in tier 2/ 3 cities.
• EMI on UPI can improve your add-to-cart rate, average order value (AOV), and optimise the conversion rate for your e-commerce business.

Introduction

Only 5% of the Indian population uses credit cards, as of February 2024. On the other hand, there are 504 million active UPI users, with over 250 billion annual transactions.

Traditionally, EMI and credit cards have been closely associated, but lower credit card penetration in tier 2+ cities has led to a demand for EMI without credit cards. Indian shoppers want flexibility, but without the friction of bank approvals, Credit card eligibility, and CIBIL score requirements.

Now comes the obvious question - why should D2C brands care about offering EMI without credit cards? For brands operating in high-AOV categories, EMI is a critical payment method for their shoppers. Since customers hesitate to pay the high ticket price upfront, brands need the EMI option to optimise checkout conversion.

This is where offering EMI shopping without a credit card becomes a growth tool. EMI on UPI options can directly improve conversion, average order value, and overall marketing efficiency.

Let’s understand why this matters and how businesses can enable it.

Why Traditional EMI Is No Longer Enough

If your brand relies on credit card EMIs, you are missing out on a huge customer base that does not use credit cards.

• Credit Card EMI Penetration Is Limited

Only around 5% Indians use Credit Cards. This means a large percentage of online shoppers simply do not own credit cards. Relying only on credit card EMI excludes that entire consumer base.

• Approval Friction

Even when credit cards are available, EMI eligibility depends on the banks, credit limits, and transaction approvals. Any friction at checkout can increase drop-offs for your D2C brand.

• Younger Consumers Prefer UPI

Gen Z and millennial shoppers are far more comfortable with UPI than credit cards. Payment experiences need to align with their habits.

If your brand is a student/Gen Z-focused brand, offering EMI on UPI can act as a growth lever for your brand. High-end brands like Titan and Mokobara use EMI without a credit card to attract younger consumers.

Ways to Offer EMI Without Credit Cards

Traditionally, EMI was offered on credit cards. But now, there are two common ways of offering EMI without credit cards:

EMI on UPI

There are more than 500 million UPI users in India, with UPI supporting 84% of digital payments in India, as of 2025.

One of the fastest-growing digital payment methods is UPI. So, by offering UPI-based EMI, you can target a large consumer base that does not use credit cards but still wants affordability.

You can offer EMI on UPI with Snapmint. Snapmint can be easily integrated into your checkout, reducing friction from the very first step.

• Customers select EMI at checkout
• Tenure options (3, 6, 9 months) are displayed
• Payment happens through UPI
• The customer can pay over a few months while you get full settlement upfront.

For brands, this can unlock incremental conversions without lowering product prices.

Pay Later Integrations

Pay Later solutions are a very trendy payment option for D2C brands. In this, customers get a certain leeway period after which they have to make the payment.

Customers can take the product home today but delay the payment, either paying the full amount after 15–30 days or breaking it into a few small installments, often interest-free.

Pay later can be offered without a credit card; however, split payment or pay-in-parts options are not available. It feels quick, light, and hassle-free, which is why shoppers love it for mid-ticket purchases.

Why Non-Credit EMI Is a Growth Lever for Business

Offering EMI without credit cards is more than just a nice feature. It has a direct effect on key performance indicators.

Increases the rate of conversion

When the upfront cost goes down, people are less likely to hesitate. Customers are more likely to finish the sale.

Raises AOV

Customers are more likely to choose more expensive options when they can afford the monthly payments.

Lowers CAC

Better use of marketing money means a higher checkout conversion rate. The cost of getting each successful order goes down.

Better ROAS

Return on ad spend goes up naturally when the same traffic converts better.

Keeps Margins Safe without Discounting

Instead of lowering prices to get people to buy, brands can make people think their products are more affordable. This keeps margins and brand positioning safe.

This difference becomes important in competitive categories.

Industries where offering EMI without credit cards matters

Honestly, EMI without credit card matters for all D2C brands, especially in categories where products range between Rs. 3,000 and Rs. 25,000. For high-ticket items, EMI can influence customers’ decision-making.

These are the top categories where offering 0% EMI on UPI can significantly benefit your business:

Consumer electronics

Mobile phones, laptops, and electronics tend to be a major purchase for students or youngsters.

This is why offering EMI on UPI on consumer electronics can increase AOV, boost conversions, and support business growth.

Cashify witnessed 10% revenue growth after offering no-cost EMI on UPI.

Appliances

Washing machines, refrigerators, air conditioners, etc., are all planned purchases. But when customers see EMI options, they are more inclined to complete the purchase, as paying the entire amount upfront can make a dent in their monthly budget.

Offering low-cost and no-cost EMI without credit cards can help brands boost GMV by making premium products more affordable.

Lifestyle & fashion

Footwear, premium apparel, watches, and purses are impulse purchases. Since there’s a huge range of products available in various price ranges, customers will be more inclined to choose a high-end product if they have affordable EMI options.

Customers go for branded fashion products when they seem achievable and affordable, which is exactly what EMI on UPI provides to your brand.

Premium lifestyle brand Titan saw 20% AOV uplift after integrating pay-in-parts for their customers.

Wildcraft witnessed a robust upsurge of 70% in their AOV, while Raymonds saw 20% GMV growth after offering EMI on UPI.

Fitness equipment and Protein Supplements

Home gym equipment and smart wearables are often purchased after consideration. Since these are high-ticket items, offering affordability can increase conversion rate.

That’s exactly what Avvatar and Beast Life experienced after integrating Snapmint pay-in-parts. Avvatar’s AOV surged by 35% after offering EMI on UPI.

Furniture

Sofas, mattresses, and storage units are high AOV purchases with strong EMI preference.

Duroflex, a premium mattress brand, witnessed 18% growth in monthly GMV.

What Should D2C Brands Look for in an EMI Partner?

Here’s what D2C brands should carefully evaluate before enabling EMI without credit cards.

• Higher AOV, conversions, and GMV
• Full upfront settlement
• Zero credit risk for brands
• Seamless checkout integration
• No need for discounting

With Snapmint, brands receive 100% of the order value upfront, even though the customer pays in installments.

By enabling EMI without credit cards, Snapmint helps businesses reach a wider audience in tier 2 & 3 cities.

FAQs