LazyPay forays into card segment with LazyCard — a prepaid payment instrument
LazyPay, a Buy Now Pay Later solution by PayU Finance, today announced its partnership with SBM Bank India to launch LazyCard, a prepaid payment instrument backed by a credit line, foraying into the card segment.
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 ₹5 lakh, said the press release. "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"
Prashanth Ranganathan, CEO, PayU Finance, 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."
According to the press release, "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."
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 LazyPay app.