To offer convenience to its customers, Daraz has got Standard Chartered Bank (Step-by-Step Instalments) Bank Alfalah (Aasan Instalments) and Silk Bank (Extended Payment Plan) on board for an EMI (Easy Monthly Instalment) programme.
The premise is simple enough: buy now, pay later. EMI is applicable on all Daraz products at a minimum cart value of Rs10,000 and incorporates everything from flexi-pay to staggered payment plans.
Daraz EMI facilitation comes with 0% markup, no down payment or hidden costs, and nil processing fees.
EMI does not mask or hide the cost of a desired, high-cost product from the consumer (high-cost being a relative term here). "Certain desirables (high-end electronics and appliances in particular) are high-cost and not within everyone’s budget at a given point in time," says Daraz Managing Director, Zain Suharwardy. "EMI acknowledges customers’ monetary limitations without compromising their consumer aspirations.”
EMI is a value-added service precisely because it satisfies the customer’s need for instant gratification, while finding a happy middle ground between impulse (buy now) and prudence (pay later via a tenured instalment programme).
“Don’t delay the purchase; defer the payment. That price-tag might be intimidating at first glance, but with Daraz Easy Monthly Instalments, it can be partitioned into manageable increments,” he adds.
For customers unwilling or unable to part with a significant lump sum in one go, EMI facilitates intervalled (or staggered) payments in 3, 6 or 12 month billing cycles. An EMI tenured plan is of particular facility to students and young people with limited disposable income who can’t resist the allure of a Samsung Galaxy S8 or, say, a deal like this.
For example, consider the Samsung Galaxy S8 which is priced at Rs 87,000 on Daraz.pk.
In EMI-terms, the Standard Chartered Bank Aasan Instalments plan would spread the total price over instalment tenures of 3, 6 and 12 months respectively.
On a 3 month instalment tenure, customers would pay Rs 29,000 per month. A year-long tenure would mean paying Rs 7,250 per month.
Instalment plans keep the price (and the product experience) fresh. Not only does the customer end up committing to the instalment plan, the extent to which said customer uses the product or service bought on EMI is greater, because the price remains vivid. This way, it not only brings convenience, but also simultaneously creates commitment to the consumer experience.
1. It allows customers to spend smart
Even if a customer has funds available, not everyone has the luxury (or the desire) to deplete their cash on hand. EMI grants customers the flexibility to make purchases without having to feed into their cash reserves and also ensures readiness in the event of an emergency or other unforeseen circumstances.
2. It accommodates the unexpected
Instalment terms make it easier to squeeze in unplanned (but irresistible) purchases into one’s budget — especially important for those running a household on a tight budget. By taking advantage of deferred payment plans, customers have more latitude to spend without fear of financial setback.
3. It can impose structure and direction over one’s cash flow
When a purchase is converted into EMI, the customer opts for a tenured payment plan of their choice. Forecasting of finances is made easier in this way. One is at liberty to plan around their expenses. With the payment term option, one can spread out their payments and manage their monthly expenses better.
4. It enables the shopper to stretch the cost of their purchase(s) over a manageable period of time
Customers can enjoy the solace of knowing that their purchase equal to or above Rs 10,000 will not burn a hole in their pocket.
Combined with practical benefits and appeal to consumer-psyche, Daraz EMI can be expected to grow further and recruit more bank partners in the near future.
Standard Chartered was the first bank to introduce EMI on Daraz.
“Standard Chartered Pakistan, consistent with our brand promise of being Here For Good, is keen on building long-term alliances with reputable partners, leading to synergies and value addition for our card members," said Mr Shezad Arif, Head of Retail Banking at Standard Chartered. "The added benefit to our credit card offering is a tremendous achievement that reflects well on the commitment and success of both Standard Chartered and Daraz.”
With Daraz EMI facilitation, customers can now reap added value on a monthly basis.
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