India is rapidly going through a digital revolution at a pace that hasn’t been seen before. The accessibility of affordable data plans, cheap smartphones, and other tech have been playing crucial roles in this process. However, apart from the fancy gadgets and their capabilities, what is really attracting first time users to the digital wave is services and convenience factors that come with these digital alternatives. One of many such services is micro-credit, a rising trend in India’s growing digital community. Also Read - Apple buys startup that converts iPhone into payment terminal
Helping individuals who have faced unemployment, salary cuts, and other monetary issues due to the ongoing pandemic, micro-credit services lend people money digitally that they can use for essential purposes like groceries, food, and medicines. They can then pay back the service later. This ‘buy now, pay later’ mantra is the need of the hour for many Indians right now. Amidst quite a few options, LazyPay is one of the widely used micro-credit applications, and Business Head Anup Agrawal lets us in on how the micro-credit business works for the brand, and why it is imperative right now. Also Read - Google Chrome to start accepting biometric payments soon
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“In addition to being a solution for financial challenges, micro-credit is relevant as India’s youth, comprising of 70 percent of the population below the age of 35, increasingly demand the convenience of payment solutions on digital platforms. The mobile-friendly youth today would like to engage with an application that is a one-stop solution for all their payment needs, including food, grocery, lifestyle, utilities, etc, says Agrawal, touching on the importance of a unified digital payment platform. Also Read - WhatsApp Pay faces antitrust accusation by India's watchdog: Report
“We have seen customer stickiness to merchant increasing 50 percent for customers who adopted “Buy Now, Pay Later” products. Addressing financial complexities with quick access to credit coupled with the shift in lifestyle trend is driving demand for LazyPay,” he adds. Agrawal also shared that since the pandemic has hit India, nearly Rs 2.62 lakh crore was transacted in over a billion transactions by Indians via UPI. LazyPay too has seen a surge in its userbase, currently handling about 30 million users.
Why India will benefit from micro-credit services
When demonetization was announced in the country on November 8, 2016, digital payments and eWallets became a hit in a matter of days. While the cashbacks, numerous offers, and tie-ups with brands were always there, it was the ability of digital payment platforms to completely replace the use of cash, which was scarce at the time, that lured people in. Today, UPI, eWallets, and other digital modes of money transfer are widely used, even being the primary choice for many users and businesses. As we head into a similar situation with the COVID-19 pandemic, micro-credit services are the new superheroes in the digital scene.
Further, there is more to micro-credit that just it’s usability and convenience. Unlike credit cards which only make sense when you consistently earn a hefty amount, micro-credit is usable by pretty much everybody. “We offer credit lines to customers for any online and offline purchase but instead of a card, the transaction is done through UPI. UPI acceptance is growing very fast with more than 1 billion transactions per month,” states Agrawal, adding that the app serves “financial complexities for wider India and not just the top 2 percent which is served by credit cards”
How does LazyPay work?
As soon as users install and setup LazyPay on their phones, the app offers them Rs 300 worth of credit. While this is available right from the beginning to use, users get a lot more benefits and flexibility once they add in their credit/ debit card and PAN details. LazyPay even implements complex, data-centric machine learning models that use AI to determine the ‘worthiness’ of a customer and how likely he/she is to repay the credit provided.
The app can do quite a bit apart from just lending you some money. You can select autopay and pay at a fixed monthly date for all outstanding dues and even use the LazyPay Credit Shield to register and check your CIBIL credit score. The app is soon even bringing in support for scan and pay. This will allow users on the move to quickly scan a QR code and pay from their credit.
Should you be willing to try micro-credit? Well, if you’re facing any form of financial discomfort due to the circumstances, micro-credit services may be just what you need right now. Plus, with apps like LazyPay making micro-credit more accessible and easier than ever, there is no better time to try the service!