Digital payments platform PayU India today launched 'LazyPay' that allows a deferred payment option to users who transact digitally for amounts ranging between Rs 500-2,500.
The company, which aims to reach out to over five million consumers over the next one year, plans to invest USD 50 million on the product over the next few years.
"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," PayU India said in a statement.
Depending upon customer behaviour, the facility could be extended for amounts from Rs 3,000 and up to Rs 10,000, it added.
"PayU India plans to invest USD 50 million in LazyPay over the next couple of years. The company aims to get over 5 mm users onboard in the next one year," it said.
LazyPay would appear as a payment option at the time of checkout on the websites and apps that integrate the product.
It would provides users with a deferral payment facility for 15 days with a transaction limit decided as per the purchasing behaviour of every individual.
PayU conducted a pilot for LazyPay last month and has onboarded merchants like Zomato, Box8, Jazz Cinemas, Netmeds and Innerchef.
Over 5,000 transactions with average ticket size of Rs 600-650 have been clocked.
"In 2015, USD 4.4 billion revenue was lost due to 20-30 per cent of transactions failing at the payment page. Hence, there was a need for a product which is faster and can give higher conversions," PayU India Managing Director Jitendra Gupta said.
The aim is to recreate the kirana store experience where a shop owner allows users to take products home and pay later because he is acquainted with them, he added.
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 statement said.
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