Ibibo’s online payment company PayU launched a new deferral payment facility in the country earlier today. Called ‘LazyPay’, the new platform will allow consumers to defer payments for their online purchases, thereby making checkouts faster and hassle-free. The service will reportedly be available as an option for customers during checkouts on websites and mobile applications that use the PayU gateway to receive online payments in the country. Customers will get a period of up to fifteen days to make the payment without being charged any interest. Merchants who choose to get on the platform, however, will have to pay a one-percent transaction charge to PayU for all payments received through LazyPay.
The service will reportedly only have a limited scope in the beginning and will only support payments between Rs. 3000 ($45) to Rs. 10,000 ($150), depending on the customer’s overall credit rating and their payment history on the platform. There’s no word on whether customers with good credit will get higher credit limits to purchase big-ticket items such as televisions, smartphones and large appliances, most of which cost significantly more than the $150 maximum credit the platform is willing to offer its users in the beginning. While the commercial launch of the service has only just taken place, PayU has already been running a LazyPay pilot program with a number of eCommerce outlets in the country since last month, the company revealed.
According to the managing director of PayU India, Mr. Jitendra Gupta, the company has already struck deals with 17 online retailers within the first few weeks of operation, with five of them said to be fairly large ones, though none of them have yet been named. The company also claims to have seen over 5,000 LazyPay transactions already, with the average ticket size hovering around the 600 to 650 rupee range, i.e. around $9 to $10. While Mr. Gupta did not reveal how many of those payments have been defaulted on, he did mention that around 20 percent of early adopters have made at least two purchases on the platform. PayU plans to invest $50 million in the platform in the next couple of years and is hoping to attract five million users within the next 12 months, the company said.