The EMI option is available for merchants up to 1 lakh in PayU-owned Buy Now Pay Later BNPL provider LazyPay.
The LazyPay EMI is already on partner platforms like Policyboss, Medvarsity, Learningbix, Nexopay and others. India currently has more than 150 million users that are transacting digitally, but only 30 million consumers have credit cards. According to the company, LazyPay EMI is a strategic response to meet the credit gap that exists in the market today, and it serves 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.
Since its inception in 2017 in India, LazyPay has been one of the preferred BNPL options for consumers across India. We first launched a deferred payment product that caters to small-ticket transactions, followed by the second version of LazyPay for big-ticket purchases. The Business Head, Anup Agrawal, Business Head, LazyPay said that the goal has been to provide world-class checkout experiences to consumers and drive higher conversions for merchants and that we have embarked on LazyPay buy now pay later EMI financing.
LazyPay plans to integrate with the PayU payment gateway in order to extend the BNPL solution to over 3.5 lakh PayU-enabled merchants, and to offer more convenience and affordability to their customers. More than 1,000 merchants in segments such as Edtech, insurance, EVs, home furnishing, and Healthtech will be on board by March 2022, according to LazyPay.
COVID-19 has changed consumer preferences for credit, with millions of consumers opting for interest-free credit at checkout points on online platforms and facilitators. Agrawal said that the Buy Now, Pay Later EMI product will be the largest contributor to the overall credit disbursals of LazyPay over the next two years.
He says that the credit solution will allow over 60 million pre-approved users of LazyPay to buy desired products or services, online and offline, without any delay, and will allow them to 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, the company said in a statement.
With zero to minimal interest, the EMIs range from 3 -- 12 months. Consumers can choose from a number of flexible repayment options and select the mode that is most convenient to them. By spreading the cost over months, consumers can manage their finances without having to compromise the instant gratification of making immediate purchases, it said.