Buy Now Pay Later (BNPL) service provider LazyPay, owned by PayU, has launched a Buy Now Pay Later EMI service for its users. Termed as the ‘LazyPay EMI’, the scheme enables merchants to offer instant cardless – EMI (equated monthly installments) option to their consumers for a ticket size upto Rs 1 lakh. In a press release, PayU said LazyPay EMI plans to directly onboard over 1,000 merchants across segments such as Edtech, insurance, EVs, home furnishing, and Healthtech by March 2022. The scheme has been launched a day back and is live with partners including Policyboss, Medvarsity, Learningbix, nexopay etc, the company said in the statement.
LazyPay EMI will enable merchants to offer instant signup for credit to their customers leading to quicker buying decisions and an increase in sales, said PayU. The “cutting-edge credit solution” will empower over 60 million pre-approved users of LazyPay with the convenience of buying desired products or services, both online and offline, without any delay, and pay later in small EMIs. “LazyPay’s entry into the BNPL affordability play will allow new-to-credit and non-credit card customers to sign up while shopping, get approved instantly and enjoy the benefit of splitting up the payment as per their convenience,” said the company in a press release.
“LazyPay has been one of the most preferred BNPL options for consumers across India since its inception in 2017. We first launched a deferred payment product that caters to small-ticket transactions followed by the second version of LazyPay for big-ticket purchases. Our constant endeavor has been to provide world-class checkout experiences to consumers and drive higher conversions for merchants and aligned to this we have embarked on LazyPay ‘buy now pay later’ EMI financing,” said Anup Agrawal, business head of LazyPay.
India at the moment has more than 150 million users transacting digitally but only 30 million consumers have credit cards. LazyPay EMI is a strategic response to meet the credit gap prevailing in the market today, and thereby, serve the evolving credit needs of consumers who are underserved by traditional institutes with no access to formal credit but are data-rich and digitally active, the company added in its press release.
The EMIs will range from three to 12 months, with zero to minimal interest. Consumers who opt for the scheme will be able to choose from various flexible repayment options, selecting the mode most convenient to them. By spreading the cost over months, consumers have efficient access to credit, the company said. “…They can manage their finances effectively without having to compromise the instant gratification of making immediate purchases,” it added.
According to LazyPay, the company uses analytics to understand consumers’ background and social footprints. This helps get insights on their purchasing behaviour to determine their spending limit. This process is independent of a person’s credit score and hence, is more inclusive for new-to-credit consumers.
“Covid has globally changed consumer preferences for credit, with millions of consumers opting for interest-free credit at checkout points on online platforms, and facilitator. In the next two years we expect our Buy Now, Pay Later EMI product to be the largest contributor to the overall credit disbursals by LazyPay,” said Agrawal after the launch of the scheme.
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