LazyPay joins the card movement and targets 1 million customers this year

The Pay Later Platform LazyPay, a branch of PayU, the leading fintech supported by Prosus, has launched a BNPL (buy now pay later) card that can be used in offline stores.

The company, which currently has 3.5 million active users, said it plans to have 1 million consumers for its card within the year.

“About 60 to 65% of our BNPL customers do not have access to credit cards for reasons such as low bank penetration and insufficient credit scores. But that’s not the only target audience for the product. We also have a database of 62 million pre-approved users who can benefit from a line of credit of up to Rs 5 lakh through the product, ”said Prashanth Ranganathan, CEO of PayU finance.

Ranghanathan also said BNPL’s business is on track to break even in the coming months due to its low non-performing assets (NPAs). “We have two revenue lines – the merchant discount rate and the late payment fine – but we see them more as a way of getting customers to pay on time,” he explained.

The BNPL platform said it was on track to triple monthly disbursements, reaching Rs 300 crore in January, year on year. Its target for the year is to time Rs 450 crore per month. The company also plans to provide insurance with its product.

“Since the revenue stream is not very large, our goal is to offer products like insurance and wealth management to our clients in the coming quarters. While most fintech companies come to credit through payments or neobank products, we started our journey with credit and that’s what gives us an advantage, ”Ranganathan said.

Regarding competition, Ranganathan stressed that companies like Slice, Uni, Jupiter and others offering BNPL cards won’t make much of a difference. “What sets us apart is that we have developed a proven model of offering a line of credit to Level 2 customers and beyond, while our peers primarily target Level 1 customers who have already have a credit card, ”he added.

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