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PayU Finance Closes India’s Financial Inclusion Gap With Launch of Credit-Backed LazyCard

LazyPay, the Buy Now Pay Later solution by PayU Finance, is set to empower India’s financially underserved with the launch of LazyCard; a prepaid payment card backed by a rewarding line of credit. 

The launch of LazyCard will be supported by LazyPay’s recent partnership with SBM Bank India.

The card aims to empower financially underserved Indians with easy access to credit. Powered by Visa and SBM Bank India, LazyCard has been designed with a strong rewards structure, creating better value for customers with each passing transaction.

Visa has been making headlines as of late for its continued ambition to close India’s financial inclusion gap. Towards the end of last year, the issuer partnered with Innoviti Payment Solutions to streamline the reach of payments in the country’s hardest to reach locations.

Enrolling on the card scheme and managing payments has been streamlined by linking the card to LazyPay’s digital banking app; whilst incurring no joining or annual fee. This also means that should anything go amiss with an account, users can rectify the problem with ease.

Available to the 62 million pre-approved users of LazyPay, the LazyCard will hold a credit limit of up to INR 5lakh (~$6763). 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 cashback.

The credit line provided by LazyCard is also boosted by the rewards received on every transaction. Users will have the opportunity to earn between one per cent and five per cent cashback on each completed transaction, proving LazyCard to be one of the most rewarding cards available in the market.

What’s especially interesting about the capabilities of LazyCard is its ‘Booster’ feature, which will allow 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 SBM Bank India in a fully digitised process.

This brings three main benefits to the user:

  • Money security via fixed deposit, with higher interest rates than savings that will boost wealth.
  • Cashbacks and offers on LazyCard that support the credit line.
  • Improves a credit score over time to strengthen their eligibility for future credit needs. As the user continues to transact using the card and build 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.
Prashanth Ranganathan, CEO, PayU Finance
Prashanth Ranganathan

Commenting on the launch of LazyCard, Prashanth Ranganathan, CEO, PayU Finance, said: “As per various industry reports, today only three in every 100 Indians owns a credit card, creating a massive credit gap in our economy. We are excited to launch ‘LazyCard’, to empower and elevate the underserved, by giving them the means to carry out financial transactions without worrying about their bank account balance.

“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.”

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 touchpoints, 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 the LazyPay app.

Commenting on the partnership, Neeraj Sinha, Head of Retail and Consumer Banking, SBM Bank India, states: “There is a need to solve for the credit needs using smart banking 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.”

Sujai Raina, Head of Business Development, India, Visa
Sujai Raina

Adding to this, Sujai Raina, Head of Business Development, India, Visa, said: “Fintechs like PayU Finance have, in recent years, been at the forefront of driving innovation and financial inclusion of new consumer segments in India. We are excited to launch the LazyCard programme to make credit more accessible to existing LazyPay customers as well as new-to-credit users. 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.”

The entire onboarding process is fully digital and paperless and is completed within minutes, with instant issuance and activation.

Author

  • Tyler is a Fintech Junior Journalist with specific interests in Online Banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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