Benefits of Brand EMI

Brand EMI is a noteworthy innovation that transforms the market for both consumers and businesses. Brand EMIs offer consumers flexible, reasonably priced payment options, enabling them to purchase expensive goods without worrying about running out of money. Understanding these advantages enables companies to successfully deploy Brand EMIs and drive growth.

What is Brand EMI?

Brand EMI is a financing option provided directly by a brand or in collaboration with a financial institution. It enables customers to pay for items or services in fixed monthly instalments over a predetermined period. Unlike traditional EMIs, brand EMIs frequently provide additional benefits such as discounts, cashback, or extended warranties. This unique feature of brand EMIs has made them very popular among customers.

Consider this scenario: a customer wants to buy an iPhone from Apple for INR 80,000. Instead of making a lump sum payment, the consumer might choose Apple's brand EMI (no-cost EMI paired with a bank), which comes out to a monthly payment of INR 10,000 for eight months. Not only can this make the purchase more affordable, but Apple might also provide additional perks such as extended warranties or bundled accessories.

Benefits of Brand EMI

For customers, brand EMIs provide an appealing option. They make high-ticket items more affordable by breaking down the cost into smaller, manageable instalments. This affordability element has greatly increased the potential customer base for businesses. Furthermore, the ability to set repayment terms allows consumers to align their purchases with their financial capacities.

From a business perspective, brand EMIs are an effective approach for growing sales and establishing consumer loyalty. These payment alternatives naturally increase the demand for high-value products by making them more affordable, eventually increasing their market share. For example, using brand EMI plans at POS terminals has resulted in tremendous growth in the Indian smartphone market.

Here are some key benefits of brand EMIs for both customers and businesses:

Use Case of Brand EMI in Various Sectors

Since brand EMIs have benefits for both customers and businesses, they are now increasing in many sectors and truly changing the purchasing habits of consumers:

• Consumer Electronics - The most significant application of brand EMIs is evident in the consumer electronics sector. All the major electronics and tech brands in India, like Apple, Samsung, LG, Sony, and more, now offer brand EMI directly from their POS terminals. With no-cost EMI offers and other perks, such as extended warranties and freebies, these brands are now reaching a wider target audience.
• Automotive Sector - The automotive sector is also a significant adopter of brand EMIs. Their EMI options have been crucial in the sales of cars and other vehicles. These EMIs have made it easy for young customers to own a car without breaking the bank.
• Travel and Tourism - While tourism was a significant sector earlier, it has grown exponentially since COVID-19. Many people now value travelling and enjoying different parts of the world. Hence, there is an increase in brand EMI options in the tourism sector as well. Businesses attract budget-conscious travellers by offering EMI options for holiday packages, airlines, and hotels.
• Furniture and Home Décor - Earlier, any furniture replacement or home renovation project took years to materialise. However, customers can now furnish or renovate their homes without burning a hole in their pockets by opting for EMI-based payment plans. Brands like IKEA and Pepperfy offer brand EMIs on their products, making them an ideal choice for customers. 

Brand EMIs provide several benefits to customers and businesses. Discover the benefits of Worldline’s secure and efficient payment solutions.