E-commerce giant Flipkart is working on a video Know Your Customer (KYC) solution to offer instant credit to customers who buy through its platform, Economic Times reported. This comes after the Aadhaar-based eKYC for private entities was struck down by the Supreme Court last year.
Flipkart’s plans to enter digital financial services has been stick for some time. It worked with smaller fintech partners to enable ‘cardless credit’ and checkout finance. However, Flipkart plans to start lending again and underwrite customers to create a pre-approved line of credit.
Ranjith Boyanapalli, vice president of fintech and payments at Flipkart, told ET, “I think applying for an NBFC licence is a natural progression to enable credit for our customers and we’re committed to moving in that direction.” He, however, did not confirm whether Flipkart had applied for a non-banking finance company licence from the Reserve Bank of India.
Flipkart has started a pilot project for digital KYC with almost 10,000 customers. It will offer the service to more customers in the coming weeks, pending approvals from the RBI.
Suyash Motarwar, director engineering at Flipkart, told ET, “It’s still in a pilot basis for which we’ve opened it up to 10,000 users only, but in two to three weeks we should roll it out to the larger customer base on Flipkart.” Motarwar said the company has an in-principle approval from the RBI and their lending partners are working closely with the RBI to ensure they are compliant.
Currently, Flipkart has partnered with Kissht and ZestMoney to offer its users EMI services while making an online purchase.
“Flipkart has been looking to build up its lending business for quite some time; there is a high chance that once they get the licence and get their models in place they could try to do major part of the business themselves,” said a digital lending founder in the know of the matter.