June 17, 2013: The MobileStore and Innoviti Embedded Solutions have announced that they would soon introduce EMI schemes on debit card to benefit consumers. Having pioneered the concept of multi-bank EMI on credit cards in 2010 Innoviti and The MobileStore have now filed a patent (2895/CHE) entitled, “A Method For Real-Time Distribution Of Credit On A Savings Account At A Merchant Location” with the Indian Patent Office for commercialization in India and other markets worldwide. As a result of this EMI will now be made available to over 200 million consumers in India – a market ten times the size of the existing credit card market, a press note said.
EMI on debit card is a novel method in which credit can be made available to consumers without a credit card. This can be done at the point of sale through a simple swipe of their debit/ATM card or online. With 18 million credit card users the statistics show that 67% of consumers today still buy high end smart phones using cash, evidence to the fact that consumers have the same affordability as credit card users. These consumers have the same levels of aspiration as a credit card consumer, have similar affordability, however may not be on the credit card base due to their profile – self-employed, lawyers, doctors, housewives, consultants, etc. Addressing this challenge the patent makes available true credit (as in extra money) available to consumers to help them fulfill their aspirations and improve their lives.
“We believe that this technology will be the next big step in bringing credit distribution to consumers, expanding the market and actually providing additional money (credit) to consumers to spend on fulfilling their aspirations “– said Rajeev Agrawal, CEO, Innoviti.
According to Himanshu Chakrawarti, CEO, The MobileStore “The MobileStore has already commercialized this concept last year in a pilot run carried out from November to January in some of our stores in India. Based on the responses from consumers we now intend to implement this across all our stores in India”
This patent captures several methods by which credit can be distributed to a consumer. Eligibility for credit can be determined by using savings account history, fixed deposits, salary history, other loans availed and other such information.