How to Offer EMI Options on Your Online Store : Comprehensive Guide 2025

18 hours agoLast Updated: July 2, 2025

EMI Options on Your Online Store : In the modern digital commerce landscape, offering convenient payment options is a game-changer for ecommerce businesses. Among the most effective methods to boost online sales in 2025 is enabling Equated Monthly Installments (EMIs). As consumer behavior leans toward flexibility and affordability, EMI payments empower buyers to purchase high-value items without straining their finances.

This comprehensive guide will take you through everything you need to know about how to offer EMI options on your online store—from understanding how EMI works, benefits for merchants and customers, technical integration, payment gateway partners, marketing strategies, and legal considerations.

📌 What Are EMI Payment Options?

EMI (Equated Monthly Installment) is a financial mechanism that allows customers to break down the total cost of a product into monthly payments over a predetermined tenure. Rather than paying the entire amount upfront, customers can pay in smaller, manageable chunks—either with or without interest, depending on the financing model.

Also Read : Ecommerce Vs Traditional Business

In ecommerce, offering EMI options is increasingly seen as a strategic move to increase conversions, especially for high-ticket products like electronics, appliances, furniture, and even fashion or jewelry.

💡 Why EMI Is Crucial for Ecommerce in 2025?

1. Changing Consumer Behavior

Customers in 2025 are more price-conscious and prefer financial flexibility. EMI offers affordability, convenience, and instant gratification.

2. Increased Conversion Rate

Shoppers who hesitate to buy due to price may convert when EMI options are available.

3. Higher Average Order Value (AOV)

EMIs enable upselling and cross-selling by making expensive combos or upgrades more affordable.

4. Reduced Cart Abandonment

By removing the upfront price barrier, EMI options reduce abandoned carts significantly.

5. Competitive Advantage

Offering EMI enhances your store’s credibility and makes it stand out in the crowded ecommerce space.

🛒 Types of EMI Options You Can Offer

There are different ways to provide EMI options to customers on your online store:

✅ 1. Credit Card EMI

Banks partner with ecommerce platforms and payment gateways to offer EMIs on credit card purchases. The EMI is billed on the customer’s credit card and repaid in monthly installments.

Popular Banks: HDFC, ICICI, SBI, Axis, Kotak, Standard Chartered

Tenure: 3 to 24 months
Interest: 0% or Bank’s standard rate

✅ 2. Debit Card EMI

Some banks allow EMIs on select debit cards, using pre-approved limits.

Popular Banks: SBI, HDFC, Axis Bank

Eligibility: Based on spending pattern and account history

✅ 3. Consumer Loan EMI

This is where NBFCs or fintech lenders (like ZestMoney, Simpl, LazyPay) offer EMI loans at checkout, often requiring no credit card.

Key Players: ZestMoney, Cashe, Flexmoney, Capital Float, PayU, KreditBee

✅ 4. Buy Now Pay Later (BNPL)

BNPL is a short-term credit that splits payments into 3 or 4 interest-free installments.

Examples: Simpl, LazyPay, ePayLater

✅ 5. No-Cost EMI

This allows the customer to pay the price of the product without additional interest charges. The interest is either borne by the seller or the payment processor.

Best for: High-margin products or festive offers

🧾 Benefits of Offering EMI Options on Your Online Store

🎯 For Merchants:

Increased sales volume and AOV
Better customer retention
Higher conversion rates
Competitive market positioning
Enhanced customer trust

🎯 For Customers:

Purchase affordability
Access to premium products
Flexible repayment
Budget-friendly shopping

🛠️ How to Offer EMI on Your Online Store – Step-by-Step Guide

Step 1: Choose the Right Payment Gateway

To integrate EMI options, you need a payment gateway that supports credit/debit card EMI and consumer finance.

🔝 Top Payment Gateways in India (2025) Supporting EMI:

Razorpay
Paytm Payment Gateway
Cashfree
PayU India
CCAvenue
Stripe India

Check for:

EMI on multiple banks
No-cost EMI support
BNPL integration
Easy integration with your ecommerce platform

Step 2: Partner with Lenders or Fintech Companies

If you’re targeting non-credit card customers, tie up with consumer finance companies:

ZestMoney
LazyPay
Simpl
KreditBee
Flexmoney
ePayLater

These partners will assess the customer’s creditworthiness during checkout and offer instant EMI options.

Step 3: Integrate EMI Plugin with Your Ecommerce Platform

Depending on your CMS (e.g., Shopify, WooCommerce, Magento, Wix), you can install EMI plugins or customize the checkout experience.

Example:

For Shopify:

Use Razorpay’s Shopify plugin
Activate EMI options under payment settings

For WooCommerce:

Install EMI plugins like Razorpay WooCommerce or PayU India plugin
Enable EMI banks from settings

For Magento:

Use built-in extensions
Integrate custom BNPL APIs

Step 4: Highlight EMI Options on Product Pages

Add EMI availability directly on:

Product detail page
Price section
Cart page
Checkout page

Display key details like:

“No Cost EMI available”
“EMI from ₹499/month”
“Available on HDFC/ICICI Credit Cards”

This increases transparency and encourages buyers.

Step 5: Configure No-Cost EMI (Optional)

If you want to offer No-Cost EMI, you can:

Bear the interest cost as a merchant subsidy
Adjust the price margin to absorb financing charges

Discuss pricing structures with your payment gateway provider or NBFC partner to implement this.

📊 EMI Eligibility & Approval Process

Most EMI offerings work based on:

Credit card eligibility
Pre-approved debit card offers
KYC verification for BNPL and NBFCs
Minimum purchase amount (usually ₹3,000 to ₹5,000)
Loan approval time (instant to 5 minutes)

The approval process is automated at checkout, ensuring a seamless user experience.

📈 How EMI Boosts Ecommerce Metrics

🛍️ 1. Higher Order Value

Shoppers are likely to spend 20–40% more when EMI is available.

🛒 2. Better Conversion Rates

EMI reduces pricing friction, making hesitant shoppers convert faster.

💸 3. Lower Return Rates

Customers who commit to monthly payments are less likely to cancel or return purchases.

🎯 4. Increased Customer Lifetime Value (CLTV)

Customers who find convenient EMI services are more likely to return for future purchases.

📢 Marketing EMI on Your Online Store

Marketing EMI options is as important as enabling them.

✅ 1. Use EMI Banners

Display “EMI Available” or “Pay in Easy Monthly Installments” on homepage sliders, product pages, and checkout.

✅ 2. Festive Campaigns

Run targeted Diwali, Christmas, or Republic Day campaigns offering No-Cost EMI.

Highlight EMI offers in carousel ads, reels, and influencer partnerships.

✅ 4. Email Campaigns

Send personalized emails offering EMI options based on browsing or cart data.

✅ 5. Google Shopping Feed

Use merchant center listings with EMI tag integration to attract high-intent buyers.

🔐 Legal and Compliance Considerations

Before offering EMI, ensure your store complies with:

RBI Digital Lending Guidelines
Fair Credit Practices Code
GST compliance on EMI components
Proper data protection (as per India’s Digital Personal Data Protection Act, 2023)

Partnering with RBI-registered NBFCs or fintechs ensures compliance and builds credibility.

📑 EMI Terms You Should Disclose Clearly

Transparency builds trust. Clearly show:

EMI tenure (3, 6, 9, 12, 24 months)
Interest rate (if any)
Processing fee
Total cost of ownership
Cancellation/refund EMI reversal terms

🧮 Sample EMI Calculation

For a product worth ₹30,000

EMI Tenure	Interest Rate	Monthly EMI	Total Cost
3 months	0% (No Cost)	₹10,000	₹30,000
6 months	12% p.a.	₹5,180	₹31,080
12 months	14% p.a.	₹2,725	₹32,700

This gives buyers options based on their financial capacity.

🧰 Tools to Manage EMI Integration

EMI Calculator Plugin (Razorpay/PayU)
BNPL SDKs & APIs (ZestMoney, Simpl)
WordPress EMI Widgets
Checkout SDKs for Shopify/WooCommerce

🔮 Future of EMI in Ecommerce – 2025 Trends

AI-driven EMI personalization: Suggest plans based on user profile
Credit score-free EMI: For first-time borrowers
Open Credit Enablement Network (OCEN) adoption
UPI-linked EMI wallets
Subscription + EMI hybrids for SaaS or products-as-service

As India continues to digitize, EMI and embedded finance will shape the next era of ecommerce growth.

📌EMI Options on Your Online Store – Conclusion

In 2025, offering EMI options on your online store is no longer optional—it’s a strategic necessity. It not only improves user experience but also significantly impacts conversion rates, average order value, and customer loyalty. Whether you’re selling electronics, fashion, or services, integrating EMI solutions from credit cards, BNPL partners, or NBFCs empowers you to capture a broader customer base.

Buy Now : Ecommerce Website

With robust payment gateway support, clear EMI communication, and effective marketing, your store can stand out and drive scalable revenue. Start with the right partners, ensure compliance, and make your checkout experience frictionless.

📢 Disclaimer : This article is intended for educational and informational purposes only. Financial products and partnerships discussed are subject to change. Store owners should verify terms with respective platforms and consult legal advisors for compliance.

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