Interview Questions › Metrics

Measure Flipkart Pay Later at checkout

Flipkart Pay Later (buy now, pay later) is offered at checkout. How would you measure whether it is good for Flipkart and its customers?

Context

Pay Later is run with a lending partner. It raises conversion but carries credit risk and regulatory scrutiny.

Clarifying questions to ask first

• Who bears default losses?
• Is the goal conversion or new-customer acquisition?

How to approach it

1. Value to customers: access and convenience
2. Value to Flipkart: conversion and incremental GMV
3. Risk: defaults, over-borrowing, complaints
4. Incrementality versus cannibalising other payment methods

Framework: Goal of the product -> Users and value exchange -> North Star -> Supporting metrics by funnel stage -> Guardrails and counter-metrics -> Decision or target

Sample answer

• Incremental orders from Pay Later users (vs holdout)
• 30-day on-time repayment rate
• Complaints per 1,000 Pay Later orders

1. Holdout test shows +3.2% checkout conversion for eligible users
2. 70% of Pay Later orders would have used another method anyway
3. On-time repayment is 94%; it is 86% for first-time credit users

Primary: incremental orders versus a holdout, not total Pay Later volume, since most orders just switch payment method. Guardrails: on-time repayment (especially first-time credit users) and complaints, because harm to customers is a regulatory and brand risk.

What interviewers look for

• Incremental conversion
• Repayment rate
• Complaint rate