Only 3 in every 100 Indians owns a credit card, says Ranganathan in assessing the market potential
Powered by Visa and SBM Bank India, LazyPay, India’s preferred Buy Now Pay Later solution by PayU Finance, has launched LazyCard, a prepaid payment instrument backed by a credit line and foraying into the card segment, especially for underserved Indians.
“Fintechs like PayU Finance have, in recent years, been at the forefront of driving innovation and financial inclusion of new consumer segments in India,” said Sujai Raina, Head – Business Development, India, Visa.
“This Visa-powered LazyCard is issued instantly, available in physical and virtual form, and offers users a readily available credit line, rewards and Visa Platinum benefits, enabling seamless and secure payments across millions of merchants that accept Visa cards,” said Raina on 12 Jan 2022.
“We are excited to launch the LazyCard program to make credit more accessible to existing LazyPay customers as well as new-to-credit users.”
LazyPay has formed a partnership with SBM Bank India to launch LazyCard in the Indian market.
Currently, the card is available to select LazyPay customers, and will be broadly made available soon. All customers interested in early access are invited to sign up for the LazyCard waitlist today. Applying for a LazyCard is an easy process.
To get this instant credit prepaid card, users need to download the LazyPay app and visit the LazyCard tab where they can input their KYC details for review.
The entire onboarding process is fully digital and paperless and is completed within minutes, with instant issuance and activation. The physical card would then get delivered within stipulated days.
The card aims at empowering financially underserved Indians with easy access to credit. Powered by Visa and SBM Bank India, LazyCard is built with a strong rewards structure, creating value for customers in every transaction by offering bigger, better cash back rewards and offers like never before. Digitally linked to the LazyPay app, the card uses robust technology to ensure security and a hassle-free experience in managing payments.
Available to the 62 million pre-approved users of LazyPay, LazyCard will empower customers with a credit limit of up to Rs.5 lakh. Consumers may avail the card at zero joining fee and zero annual fee. It also offers users multiple transactional benefits and reward-earning potential such as welcome rewards, retention rewards and Visa Platinum Rewards in the form of cashbacks.
The credit line provided by LazyCard is also boosted by the rewards received on every transaction. Users have an opportunity to earn 1% to 5% cash back on every transaction, making it one of the most rewarding cards available in the market.
Commenting on the launch of LazyCard, PayU Finance CEO Prashanth Ranganathan said, “As per various industry reports, today only 3 in every 100 Indians owns a credit card, creating a massive credit gap in our economy.
“Backed by our proprietary credit underwriting capabilities and data science muscle, the card boasts the largest pre-approval base of 62 million customers, helping more people qualify, particularly in the pandemic’s strenuous economy. We aim to reach corners of the population and give a card in the hands of all underserved Indians.
“We are excited to launch ‘LazyCard’, to empower and elevate the underserved, by giving them means to carry out financial transactions without worrying about their bank account balance,” he said.
LazyCard’s ‘Booster’ feature is useful for thin-file borrowers to rebuild their credit score or establish their credit history. This feature enables users to get access to the card by setting up a fixed deposit with RBI-regulated SBM Bank India in a fully digitized two-minute app flow. ‘Booster’ feature allows users to get three benefits: (1) Money security via fixed deposit, with higher interest rates than savings for boosting wealth, (2) Cashbacks & offers on LazyCard that boosts the credit line, (3) Improve credit score over time to strengthen their eligibility for future credit needs.
As the user continues to transact using the card and build his creditworthiness, LazyPay will start unlocking the credit line. The user is then free to withdraw the deposit and continue enjoying access to enhanced credit and rewards on the card.
Commenting on the partnership, SBM’s Head – Retail & Consumer Banking Neeraj Sinha said, “There is a need to solve for the credit needs using Smartbanking solutions that are available, accessible, and affordable.
“SBM Bank India is endeavouring, as a part of its comprehensive SmartBanking solution set, in partnership with LazyPay, to introduce the Visa powered LazyCard.
“Further this Card will smoothen the entire loan processing capability at LazyPay’s end thus helping to bring them towards better financial inclusion. We are elated to partner with LazyPay towards this prepaid card.”
The card, which is an extension of the services offered by India’s most popular deferred payments options LazyPay, comes in a physical and a virtual avatar and offers customers the same level of convenience, speed, and flexibility in their buying experiences across all touch points, online and offline. Cardholders will have access to the credit line across the LazyPay credit universe, which includes products like LazyPlus (UPI), LazyPay (BNPL) deferred payment and LazyPay app. fiinews.com
