Indians are leading the world in digital payment transactions. A huge demographic of young, and tech-savvy consumers with purchasing intent is driving this surge. In 2021, India led the world with the highest daily real-time payments volume at 70.2 million.

However, we are still a credit-hungry country. If your credit card application has been rejected, know that you are not the only one. There were only 3 credit cards for every 100 people in India in 2021. Without a proper credit history, credit cards are not issued. In absence of them, people can’t build scores. This is a vicious loop that the young consumers don’t appreciate anymore.

This is the era of Payments 4.0. Pandemic has created the possibility of a cashless economy. Payments are embedded, and platforms enable frictionless experiences. The advent of fintech has encouraged financial inclusion. Emerging technologies and alternative data can help lenders to assess the creditworthiness of applicants within a few minutes. 

So, why go through the cumbersome process of credit card applications and then carry them around securely, if provided one. These options are helping millions of Indians lead an aspirational lifestyle.

Buy Now Pay Later (BNPL) for Aspirational Purchases

BNPL has reshaped how consumers perceive credit. What started as a means to handle economic constraints during the pandemic, is now a highly popular payment method among the masses. With a single click, BNPL allows consumers to increase their affordability. The amount can be paid later in a stipulated period. Moreover, the repayment is interest-free if made on time. With the accelerated adoption of ecommerce platforms, BNPL has gained more traction. It is embedded right into the checkout pages of leading brands in travel, health, fashion, healthcare, education, and more. Customers can use their replenishable credit facility to shop across brands. So, whether you want to order food from Swiggy, or buy airplane tickets from MakeMyTrip, you can do so with equal ease. BNPL is expected to constitute 14% of ecommerce transaction value by 2026.

Instant onboarding, fast approvals, and flexible repayment options are some features that make BNPL appealing. For merchants, it’s a great way to potentially increase average order values. They encourage repeat purchase behaviour, by offering attractive offers, cashback, and discounts. Not only online payments, but BNPL can also be used at offline stores too. For instance, you can use the Lazy Pay Pay-Later option to pay at petrol pumps, or nearby grocery stores too.

 India’s BNPL market is forecasted to reach a size of $40 billion by 2025.

Virtual Credit Cards Ensure Convenience

About 31 card issuers in India issued only 62 million credit cards till August 2021. It’s not only an issue about credit card approvals. Young Indians have an aversion to the high-interest charges, hidden fees, and paper-based application process.

Virtual credit cards are easy to be carried around on smartphones, without the fear of theft or compromise. Cards like LazyCard by LazyPay is a lifetime free card with no hidden or annual fees. Built-in collaboration with RBI-approved SBM Bank and VISA, the LazyCard by LazyPay can be used to buy anything online and offline. Consumers don’t have to worry about their bank account balance while making big-ticket spends.

With a paperless KYC process, onboarding is easy and technology allows superior credit underwriting. This means even first-time borrowers can avail of the LazyCard by LazyPay. The credit limit depends on past transaction histories. Consumers can expand this limit through good repayment behaviour. They also earn travel miles, points, cashback, and other benefits.

Safer Transactions through Encryption

Through tokenisation, actual credit card details can be converted into unique codes called “tokens”. This is seen in payments through QR codes, contactless card transactions, apps, etc. in India. Apart from enhancing security, tokenisation improves the overall customer experience too. People don’t have to remember credit card numbers or give them to third parties.

The Rise of Super Apps

Consumers don’t just want credit, they are looking for contextually relevant experiences that go beyond payments. This is the age of super apps, which is redefining how customers buy, pay, and engage with brands.

Safe, reliable, and consistent access to credit is the core service. Apart from that super apps can help track payments, set reminders for repayments, plan budgets, and check credit history. They have become critical for financial inclusion in India. With accelerating smartphone and internet penetration, super apps can teach new India to better manage money.

LazyPay is India’s credit super app designed to offer solutions to new-to-credit customers. Download our app, and shop across millions of merchants. Don’t forget to check our Instagram page.

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