PayU Gets off Credit Card, Plans to get Lazy

LazyPay will give users an op­tion to pay later for their on­line pur­chases

The Economic Times - - Disruption: Startups & Tech - Mugdha.Vari­yar @times­

Bengaluru: PayU In­dia has scrapped its plans to launch a credit card. In­stead, it will launch a dig­i­tal con­sumer credit prod­uct, LazyPay, next week. A prod­uct de­vel­oped by Cit­rus Pay, which PayU ac­quired last year for $130 mil­lion, LazyPay would give its users an op­tion to pay later for their on­line pur­chases.

“We are now set to go live next week with 20 on­line mer­chants where con­sumers can use the op­tion to pay later,” said Ji­ten­dra Gupta, man­ag­ing di­rec­tor of PayU In­dia.

He said the credit card prod­uct was shelved due to the un­vi­able cost struc­tures. The firm has laid off about 60 em­ploy­ees who were meant for call cen­tre and col­lec­tions op­er­a­tions for the credit card. “Credit card pay­ments have a suc­cess rate of 80-82%, with 20% drops hap­pen­ing due to in­fra­struc­ture and net­work is­sues. Cus­tomer ac­qui­si­tion costs are also high,” said Gupta who founded Cit­rus Pay. “But with LazyPay, it is a con­ve­nience prod­uct for any­one to pay later and the credit line can ex­tend from .₹ 2,000 to .₹ 3,000 and even up to .₹ 10,000, de­pend­ing on the pro­file of the cus­tomer,” he said. Gupta said the com­pany has de­vel­oped al­go­rithms for dy­namic, real-time un­der­writ­ing based on 80-odd vari­ables.

The credit op­tion will be avail­able to cus­tomers on 20 on­line mer­chant

JI­TEN­DRA GUPTA Man­ag­ing Di­rec­tor, PayU In­dia We will add about1,000 mer­chants in the next two months

plat­forms in­clud­ing play­ers in food de­liv­ery, gro­cery de­liv­ery and movie tick­et­ing spa­ces. “We will add about 1,000 mer­chants in the next two months,” Gupta said.

He said the prod­uct has been de­signed as a de­fer­ral pay­ment op­tion and hence does not need a sep­a­rate li­cense or reg­u­la­tory ap­proval. The com­pany is in ini­tial stages of part­ner­ing with some banks, he said. PayU In­dia CEO Am­r­ish Rau said the move to scrap the credit card prod­uct and launch LazyPay also meant re­al­lo­cat­ing some re­sources from the orig­i­nal project.

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