LazyPay halts Buy Now, Pay Later product among PPI concerns

Wednesday 6 July 2022 13:04 CET | News

India-based digital credit provider LazyPay has temporarily stopped support for its Buy Now, Pay Later (BNPL) payment product amid rising regulatory concerns.

The product, launched by the company in September 2020, allowed users to pay through the unified payments interface (UPI) channel from a revolving credit line issued to the customer. LazyPay was issuing a credit line of up to USD 1,266 to users for undertaking online and offline transact through UPI.

LazyPlus UPI had stopped onboarding new users in 2021 as banking partners pulled out of the arrangement, people aware of the discussion told The Economic Times.

The decision comes as the Reserve Bank of India sent the fintech industry into a tizzy in June 2022 after it sent a directive to industry stakeholders disallowing prepaid payment instruments (PPIs) from being loaded with credit lines.

It is reported on June 30, that LazyPay had updated its terms and conditions after the RBI directive, asking customers to accept new terms and conditions, failing which all their transactions will be blocked across the platform.

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Keywords: BNPL, regulation, fintech, lending
Categories: Payments & Commerce
Companies: LazyPay
Countries: India
This article is part of category

Payments & Commerce


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