Downpayment on EMI


Down Payment on EMI is an affordability feature that provides businesses with a comprehensive payment solution, enabling their customers to make a down payment for a purchase and pay the remaining amount through convenient EMIs.

This solution offers several advantages:

  • Reduced interest for the end consumer: EMI payment done with a down payment ensures that customers pay lesser interest vis-a-vis paying the entire transaction amount into EMIs.
  • Reduced Cost of Subvention: Merchants or Brands running subvention offers will have to bear lesser subvention cost in comparison to the case where the subvention needs to be offered on complete product price 
  • Improved conversions: Customers get inclined to make purchase of high ticket size products when presented with EMI options along with a Down payment
  • Optimized Transaction journey: A superior customer experience is offered by collecting a single authorisation for processing both the down payment and subsequent EMI payment.


 A comparison between EMI transactions with and without down payment for Rs. 50,000 order with tenure of 6 months and Interest rate of 16%. For Down payment flow, a 20% down payment is considered.



EMI without Down Payment

EMI with Down payment


Order Amount

Rs. 50,000

Rs. 50,000


Down payment amount


Rs. 20,000

Down payment is processed as Full swipe transaction

Loan amount

Rs. 50,000

Rs. 30,000 


Interest amount

 (16% ROI,  24 months)

Rs. 8,756

Rs. 5,253

Reduced interest for EMI with Downpayment

Total Payable amount

Rs. 58,756

Rs. 55,253


 Note: For EMI with a Down payment, Rs. 50,000 will be authorized on the customer’s Credit card. From the authorization, Rs. 20,000 will have to be paid by the customer to issuing Credit card as per the next billing cycle.  Rs. 30,000 will be converted into the EMI by the issuing card



  1. Down-payment flow would work on Pre-auth and Capture flow with some enhancements. Merchants should integrate the Pre-auth/Capture flow
  2. This feature is currently supported only on Custom checkout flow
  3. Once the authorisation is complete, merchants should make successful captures for both downpayment and EMI amount i.e. Merchant would be hitting 2 Captures for a single Pre-auth transaction
  4. Currently down-payment flow is supported by selective issuers. 

 Note: Please reach out to your KAM or contact us for integration details along with getting the list of issuers supported for the flow

Business Rules

  1. Paytm PG will not be keeping any information about down payment plans. This will be maintained by merchants.
  2. Product/ Service to be delivered to customers only after both captures become successful against the authorisation
  3. For processing refunds, Merchants should call Refund APIs for each of the capture transactions separately