Buy Now and Pay within 15 days with PayU's LazyPay
Global payment gateway provider, PayU came up with a new move this time in India. PayU launched LazyPay, an intersting service in which one can buy now and pay up to 15 days. LazyPay allows deferred payments by up to 15 days, in the same way, credit cards do.
“The risk associated with the transactions are different but you face the same tedious procedures. Micro transactions see transaction drops due to multiple hops from merchant to aggregator to bank/card gateway and back. At the PayU, we wanted to solve the problem of convenience for small value transactions. That’s why LazyPay was conceptualised and developed,” says PayU.
PayU has invested $50 million into this product and hopes to revolutionise the mobile wallet industry. It was first piloted in March 2017, but the product has now been officially launched in the market.
How to Shop using LazyPay?
At this point of time, LazyPay is applicable only on select merchants, and the company is expanding its reach. The product can be used only for cumulative transactions between Rs. 500 and Rs. 2,500. However, the credit line can be increased up to Rs. 10,000 depending on the spending behaviour of the customer.
Now, to use LazyPay, you need to either get an invite, from someone who is already using it. However, if you want to experience it, you can see a demo on the website that shows that the checkout time is extremely low so that you can delay your payment.
There is another way to get LazyPay. The risk associated with such payments is being captured by LazyPay’s algorithms at the back, that determine what customer should be allowed to use this service. When you request for an invite on their website, the company will check your online purchase and payment history to see if you’re eligible or not.
Once you have it installed, you can make transactions on the merchant side, and get some time off to make the payments. It is an equivalent to credit cards, but with a smaller due time. This will work extremely well with Indian buyers if modelled very well with Indian purchase behaviours.
How will it help customers?
Let’s say you want to purchase a book or a pair of sunglasses online and you’re out of cash in your mobile wallet. You can simply checkout from your cart using LazyPay and pay the merchant later.
LazyPay has partnered with 5 big merchants and 12 smaller ones including Zomato and Box8. The company has already approved 10 million users and hopes to acquire 5 million more. They also have a real-time debt write-off in place for miscreants.
LazyPay’s idea is similar to that of ‘Ola Credit’ and will attract a lot of customers. However, not everyone will be able to use it, which might, in turn, encourage users to improve their online transaction history. In a way, the ones that get to use it will love the deferred payment facility.