Offering EMI and pay later at checkout: is it worth it?

Offering EMI and pay-later at checkout is usually worth it if you sell higher-priced items, such as furniture, electronics, appliances, jewellery, premium clothing or courses, where a buyer might hesitate to pay the full amount at once. For low-priced everyday products, it rarely changes much. The key is to know exactly which options your payment gateway gives you, what each one costs you, and to describe them honestly on your product pages.

What's the difference between card EMI, no-cost EMI and pay later?

In every case, you normally receive the payment through your gateway as usual, and the lender or bank deals with the buyer's instalments. Exact terms vary, so read your gateway's documentation.

Which products and buyers benefit most?

• Furniture and home appliances: big, planned purchases for a home. See selling furniture and home décor online.
• Electronics and accessories: phones, laptops, audio, cameras. See selling electronics online.
• Jewellery and wedding outfits: high value, often for an occasion with a fixed date.
• Courses and coaching: term fees that families prefer to spread.
• Fitness equipment and premium wellness products.

Buyers who use EMI are often salaried, plan purchases around pay day, and already use EMI elsewhere. Younger shoppers may be more familiar with pay-later options and credit on UPI; see credit on UPI and pay-later shoppers.

How does EMI appear through Razorpay?

On UpMinutes, payments go through your own Razorpay account. Card EMI and pay-later options appear at checkout where your Razorpay account offers them, alongside UPI, cards, net banking and wallets. Which EMI and pay-later providers are available, minimum order amounts, eligibility and fees are set by Razorpay and its partners, not by UpMinutes.

To check what you have:

1. Log in to your Razorpay dashboard and look at the payment methods enabled on your account.
2. Check the pricing for each method, especially EMI and pay later, which can differ from standard card or UPI fees.
3. Look at minimum order values for EMI; small orders may not qualify.
4. Make a test purchase on a higher-priced product to see what a buyer sees.
5. Contact Razorpay if a method you want isn't showing.

If you haven't connected Razorpay yet, follow our Razorpay setup guide.

What does EMI cost a seller?

There are two possible costs:

• Gateway fees: EMI and pay-later transactions may carry a different fee from UPI or standard cards. Check your gateway's current pricing.
• No-cost EMI subsidy: if you offer no-cost EMI, you usually give the buyer a discount equal to the interest their bank would charge. That comes out of your margin.

Here's a hypothetical example. Say you sell a sheesham coffee table at ₹18,000 with a margin of ₹5,000. If offering no-cost EMI over six months costs you around ₹900 in interest subsidy plus a slightly higher gateway fee, your margin falls to roughly ₹4,000. That's worth it if EMI helps you sell tables you otherwise wouldn't, and not worth it if most buyers would have paid in full anyway. Run your own numbers with the free profit margin calculator.

How should you show EMI on product pages?

Shoppers look for EMI information before they reach checkout. Mention it, but carefully:

• Say it plainly in the description: "Card EMI and pay-later options available at checkout for eligible cards and accounts."
• Don't promise "no-cost EMI" unless you've set it up and checked how it works for every bank.
• Don't quote a monthly amount unless you're sure of the tenure and interest; banks set their own rates.
• Put EMI details in your FAQ or payment page, with a note that eligibility depends on the buyer's bank or lender.
• Keep the main price clear. EMI is an option, not a replacement for showing the full price, including GST.

Can you offer EMI on WhatsApp and phone orders?

Many expensive purchases start in a conversation: a buyer asks about a sofa's fabric or a laptop's warranty on WhatsApp, then decides. You don't need to send them back to the website to pay. In UpMinutes, create the order in your dashboard and send a Razorpay payment link in one tap; stock, GST and the invoice are worked out for you. The buyer opens the link and sees the payment methods your Razorpay account supports, which can include EMI and pay later where available.

When a buyer asks "Is EMI available?", a careful answer works best: "Yes, card EMI and pay-later options show on the payment page for eligible cards and accounts. Your bank sets the tenure and interest." It's honest and avoids promising terms you don't control.

Which tenures do buyers usually choose?

Banks typically offer a range of tenures, from a few months to a year or more, with different interest rates. Shorter tenures mean higher instalments but less interest; longer ones feel easier each month but cost the buyer more overall. You don't choose the tenure for standard card EMI, the buyer does at checkout. If you're considering no-cost EMI, it's common to limit it to shorter tenures, since the interest you cover grows with the length of the loan.

Does EMI change refunds and cancellations?

Yes, a little. When an EMI or pay-later order is cancelled or returned, you refund through your gateway as usual, and the bank or lender adjusts the buyer's instalments. Interest already charged by the bank may follow the bank's own rules. Say in your refund policy that EMI refunds follow the bank's process and timelines. Our guide to refunds and credit notes covers the GST side.

What about cash on delivery for expensive items?

For higher-priced products, COD is risky, because a refused parcel costs more to ship back and ties up valuable stock. Many sellers set a COD limit below their expensive items, so those must be paid online, and offer EMI as the friendly alternative: "Paying online? Spread the cost with card EMI." On UpMinutes, you can set a COD limit and a minimum order so expensive orders go to prepaid checkout.

Is EMI worth it for your store? A quick checklist

• Do you sell items where the price makes buyers hesitate?
• Does your gateway offer EMI or pay later, and at what cost?
• Can your margin carry a no-cost EMI subsidy, or will you offer standard EMI only?
• Have you written clear, cautious wording for product pages and your FAQ?
• Have you tested the checkout yourself on a phone?
• Will you review the numbers after a month or two?

More on payments is in Payments & GST.

Filed under Payments & GST. More guides on the UpMinutes blog.