Payment gateway provider PayU India is all set to launch its new consumer credit business this month. The new business, under the 'Lazy Pay' brand, will allow customers to complete the purchase without making the payment, PayU's managing director Jitendra Gupta told Techcircle recently.
Gupta, who has developed its credit underwriting business through Citrus Pay's Lazy Pay unit, will be leading the business.
In September, PayU, owned by South African Internet conglomerate Naspers Group, bought its rival Citrus Pay for $130 million in one of the largest takeover deals in India's rapidly growing fintech sector. As part of the deal, Citrus Pay founder Gupta joined the merged entity as MD.
Lazy Pay will come as a payment option on merchant payment page to avail the credit. The B2C product will give consumers 'pay later' option while making a purchase on the merchant site. "We will be leveraging the enterprise merchant network and consumer network that we have," Gupta said.
"Today, purchase and payment are embedded together to complete a sale. But, we are looking at delivering this experience where the consumer still makes the payment digitally but not at the time of purchase. For example, if someone buys movie tickets, he will just click on buy movie tickets and the purchase will be completed, and no payment is required," he added.
"We will aggregate the purchases during a fortnight and give the customer a single invoice to make payment to us.
This takes away the anxiety or dropouts which happen during the purchase process. Typically, we see 20-25% drops during a payment process due to multiple issues." Consumers can avail the loan between Rs 3,000-Rs 10,000.
In the next three years, the company wants to serve 50 million loans. "The repayment cycle is 15 days so this is an achievable target," Gupta believed.
Gupta, who didn't disclose the total investment he is putting in this business, said "Naspers is fully committed to any amount of money to support this business," and that he has already started building a team and hiring tech and product guys both internally and externally.
On Shift from Enterprise to Consumer?
Gupta, who is the founder of Citrus Pay which has a strong foothold in the enterprise side of India's online payments segment, has "moved out of the merchants business altogether," and is now focussed towards creating a consumer brand. Why the shift? "This is for end-consumers, but the distribution happens through merchants. I am personally very excited about this product. Post acquisition, since the bandwidth is more and there are already two strong guys (Amrish Rau and Shailaz Nag) who have the capability and experience to drive merchant business, so I thought why not create something from scratch and create a large value for the combined entity," Gupta said. Rau is the chief executive officer and Nag is the co-founder of PayU.
PayU -- which is now the undisputed leader in the payments gateway space after Citrus Pay acquisition -- will continue to focus on the merchant business, he further added. Majority employees are still working on the merchant side of the business, which is the revenue driver of the company. "The first focus of the combined entity would be to come up with new offerings and increase the market share. We are already leading the e-commerce payments space.
On the other hand, while the large part of the company focuses on the enterprise business, I will individually focus on the consumer business and make it equivalent to the enterprise business."