Lazypay

Lazypay is India’s leading digital credit and Buy Now, Pay Later (BNPL) platform, operated by PayU Finance (a subsidiary of global fintech leader PayU). Originally developed as a consumer brand by Citrus Pay—which was acquired by Naspers-backed PayU in 2016—Lazypay has evolved into a full-stack fintech solution, bridging the credit gap for millions of Indian consumers and merchants. The company’s mission is to make credit accessible, instant, and frictionless for both online and offline purchases, serving a rapidly digitizing economy.

Core Products and Services

• Buy Now, Pay Later (BNPL): Instant credit for online and offline purchases, with up to ₹1 lakh limit and 15-day interest-free repayment window.

• LazyPay EMI: Flexible installment plans for purchases from ₹5,000 to ₹1 lakh, with repayment tenures of 3 to 12 months—no credit card required.

• Personal Loans: Instant, unsecured loans from ₹10,000 to ₹5 lakh, with tenures from 3 to 36 months and interest rates starting at 11.99% p.a.

• LazyUPI: Digital credit card functionality enabling real-time credit via UPI for both online and offline merchants, with part-repayment and revolving credit features.

• No Cost EMI: For select merchants and purchases, allowing users to split payments into up to 3 interest-free EMIs or up to 12 months with nominal interest.

• Merchant Solutions: APIs and integrations for e-commerce, quick commerce, and SMBs to offer seamless deferred payment options at checkout.

Business Model & Revenue Streams

• Merchant Fees (Primary Revenue Stream): Merchants pay a commission (typically 2–8% of transaction value) for enabling BNPL and EMI options at checkout, which increases cart conversion and average order value.

• Interest Income: From personal loans and EMI products, with rates ranging from 11.99% to 32% p.a. depending on the product and user profile.

• Late Payment Fees: Charged to users who miss repayment deadlines on BNPL or EMI products.

• Subscription and Processing Fees: For premium services, loan processing (2% of loan amount), and certain merchant integrations.

• Geographic and Product Mix: As of 2024, 60% of demand comes from Tier 2/3 cities, with the remainder from metros and Tier 1 cities.

Customer segmentation

• B2C: Salaried and self-employed individuals aged 22–55, including new-to-credit and digitally savvy users.

• B2B: E-commerce, quick commerce, SMBs and large merchants seeking to improve checkout conversion and customer retention.

Top Clients & Partnerships

• E-commerce and Quick Commerce: Flipkart, Zepto, Meesho, Swiggy, Zomato, Samsung, BookMyShow, GoAir.

• Payment Aggregators: Razorpay, Cashfree, CC Avenue—enabling Lazypay at 3.5 lakh+ merchants.

• Telecom and Utilities: Airtel, Policyboss, Medvarsity—expanding BNPL to bill payments and insurance.

• D2C and SMBs: ParkPlus, Dukaan, Licious, boAt, and others.

• Parent and Strategic Partners: PayU Finance (parent), PaySense (lending partner), Wibmo (tech stack).

Future Outlook & Strategic Priorities

• Product Innovation: Expansion of EMI and UPI-based credit, higher ticket-size lending, and AI-driven underwriting for new-to-credit users.

• Merchant Network Expansion: Targeting 150,000 merchants by 2026, with focus on in-store payments and premium verticals.

• Geographic Reach: Deepening penetration in Tier 2/3 cities, which now account for 60% of new demand.

• Cross-Border Payments: Leveraging PayU’s licenses and infrastructure for international expansion.

• Regulatory Uncertainty: RBI’s evolving stance on digital lending, BNPL, and UPI-linked credit products.

• Credit Risk: Managing defaults and late payments, especially as Lazypay scales to new user segments.