On 11th January 2022 LazyPay, a Buy Now Pay Later (BNPL) solution by PayU Finance, announced its partnership with SBM Bank India to launch LazyCard, a prepaid payment instrument backed by a credit line that works on the Visa payment network.
- Objective – To empower financially underserved Indians with easy access to credit as their card has limited credit options.
About LazyCard:
i.LazyCard reaches over 62 million pre-approved users of LazyPay, with a credit limit of up to Rs. 5 lakh.
ii.Consumers could avail the Lazycard at zero joining fee and zero annual fee along with multiple transactional benefits and rewards.
- The credit line provides an opportunity to earn 1 percent to 5 percent cashback on every transaction.
- Cardholders could also enjoy personalized offers based on spending habits through the LazyPay app.
iii.Cardholders will have access to the credit line across the LazyPay credit universe, which includes products like LazyPlus Unified Payment Interface (UPI), LazyPay BNPL deferred payment and LazyPay app.
Booster features:
i.Lazycard’s booster feature enables users to get access to the card by setting up a fixed deposit with Reserve Bank of India (RBI)-regulated SBM Bank India through digitization.
ii.Benefits of this feature include – Securing money through fixed deposits, with higher interest rates than savings, Cashbacks & offers on LazyCard that boosts the credit line and credit score.
–‘LazyCard’ was launched, Amid Competition in BNPL Space
As the demand for online shopping has grown in the last few months, the BNPL space continues to attract investor interest.
BNPL Space Providers:
i.Uni – In December 2021, BNPL card provider Uni raised one of the largest Series A rounds in the Indian fintech space, raising around USD 70 million led by General Catalyst.
- Uni is focussing on credit disbursements to measure upto Rs 1,500 crore by September 2022.
ii.Slice – The credit and payments card provider, Slice became the 41st Indian unicorn of 2021, after raising USD 220 million led by Tiger Global, at a valuation of USD 1 billion.
- Slice has increased its credit card issuances to 2 Lakh by October 2021
iii.ZestMoney – In 2021 ZestMoney, a payment platform, raised USD 50 million to tap on international merchants, and increase its usage of credit.
iv.BharatPe – In October 2021, fintech unicorn BharatPe also entered into the BNPL space with the launch of ‘PostPe‘.
Recent Related News:
Paisabazaar.com, India’s largest lending marketplace and Credit Score platform and SBM Bank India, the youngest universal bank, launched the ‘Step Up Credit Card’, a credit builder product to meet the credit needs of underserved segments.
About PayU Finance India Private Limited (PayU Finance):
CEO – Prashanth Ranganathan
Headquarters – Gurugram, Haryana
About SBM Bank:
i.It is the 1st bank to receive a universal banking license from RBI to set up and operate as a Scheduled Commercial Bank under Wholly Owned Subsidiary (WOS) mode offering banking services in India.
ii.In 1st December 2018, it became the 1st foreign bank in India to operate as a new Indian bank.
CEO & MD – Sidharth Rath
Headquarters – Mumbai, Maharashtra
