Flipkart Group has partnered with PayU Finance to launch Flipkart Pay Later, a new embedded credit solution that offers customers flexible repayment options at checkout across Flipkart, Myntra and Flipkart Minutes, as the e-commerce major deepens its push into digital financial services.
The offering provides three repayment choices: Pay Later with up to 30 days to repay for everyday purchases, Pay in 3, which splits payments into three instalments, and EMIs ranging from 3 to 12 months for higher-value purchases such as smartphones, consumer electronics, appliances and furniture.
The move is aimed at making digital commerce more accessible by providing instant credit at the point of purchase, particularly for customers making frequent low-value transactions as well as those buying premium products.
PayU Finance becomes first lending partner
Flipkart Finance has launched the programme with PayU Finance, the NBFC arm of PayU, as its first lending partner, with plans to onboard more financial institutions as the platform expands.
Under the partnership, PayU Finance will act as the regulated lender, while Flipkart Finance will leverage its commerce intelligence, customer behaviour and transaction history to support underwriting and customer engagement.
The companies said the credit assessment model combines commerce data with lending expertise to enable faster credit decisions while ensuring responsible lending and avoiding customer over-leverage.
“Affordability remains the core driver of how millions in India engage with digital commerce. With Flipkart Pay Later, we are putting a decade of commerce signals to work to build an underwriting model that extends credit when customers need it most,” said Vishal Ahuja, Executive Director, Flipkart Finance.
Deepak Mendiratta, CEO, PayU Finance, said the partnership combines technology-driven underwriting with robust risk management to expand financial inclusion while supporting the next phase of India’s digital commerce growth.
Strengthening embedded finance strategy
The launch marks another step in Flipkart’s broader strategy of integrating financial services into its shopping ecosystem. By embedding credit directly into the checkout process, the company is seeking to improve affordability while increasing customer conversion and repeat purchases.
Industry analysts note that embedded finance is becoming a key battleground among India’s digital commerce platforms as companies look beyond payments to offer lending, insurance and wealth products that deepen customer engagement and generate additional revenue streams.
With more than 500 million registered users and over 1.4 million sellers across its marketplace, Flipkart has one of the country’s largest digital commerce ecosystems, providing a strong base to scale consumer credit offerings.