In a move to revolutionise the online payments industry in the country, PayU India launched 'LazyPay', a deferral payment facility for consumers. It is a product aimed at those who transact digitally for any amount between Rs 500 and 2,500, with an option to pay later.
The aim of the product is to drive faster purchase experiences and convenience by reducing friction on online checkouts and achieving a zero drop situation for online payments.
LazyPay appears as a payment option at the time of checkout on websites and apps integrating the product. It provides users a deferral payment facility for 15 days with a transaction limit decided as per the purchasing behaviour of every individual.
Select consumers can now simply shop via LazyPay and conveniently settle the dues during the payment cycle instead of having to feed in card details or net banking credentials. This further makes the transactions smooth and seamless without transaction failures, need for passwords, etc.
"At PayU India, our endeavour is to provide world class experiences to consumers and drive higher conversions for merchants. LazyPay is the perfect example of our philosophy of simplifying the online payment process, wherein we separate the purchase and payment experiences and provide a deferral payment facility to the consumer. Furthermore, as a consumer-centric product, Lazy Pay delivers instant gratification to consumers, even thought they might be out of funds at the time of placing the order," Jitendra Gupta, Managing Director, PayU India.
"In 2015, $4.4 billion revenue was lost due to 20-30 percent of transactions failing at the payment page. Hence, there was a need for a product which is faster and can give higher conversions. LazyPay is simply a premium experience to fast forward consumer purchases. We want to provide users a privileged experience for payments, just like frequent flyers would experience privileges while checking-in at airports. We aim to recreate the kirana store experience where a shop owner allows you to take products home and pay later because he is acquainted with you,"he added.
The pilot for LazyPay went live in March 2017 and the initial response was encouraging. Within a month, LazyPay has 5 big merchants and more than 12 smaller merchants onboard including Zomato, Box8, Jazz Cinemas, Netmeds and Innerchef.
The product has already clocked over 5,000 transactions with average ticket size of Rs 600-650. In addition to this, 20 percent of the customers have done 2 or more transactions so far. This outcome has been achieved without any marketing.
In the range of Rs 500-2,500, consumers generally pay online for movie tickets, food, groceries, small bills (phone, electricity, water or DTH), etc. The platform pre-decides whether online user is eligible for a LazyPay transaction.
Users are selected based on a trust score, which is computed basis their online transaction purchases and rewarded with this premium experience accordingly.
More than 10 million users have been qualified for LazyPay so far and the system is equipped with algorithms that will write off debts in real time.
The said algorithms put in place for dynamic, real-time underwriting, are based on 80-odd variables. Proactive analytics and machine learning algorithms are a part of the internal architecture.
PayU India plans to invest $50 million in LazyPay over the next couple of years. The company aims to get over 5 million users onboard in the next one year. PayU India has largest merchant distribution network in the online payment space, which it will utilise for expansion.