PayU owned LazyPay, a deferral payment facility which will allow users to purchase and pay later, has partnered with mass transit aggregator app Ridlr. Ridlr users can now pay for their Mumbai local bus and metro rides using the pay later option. Users can make multiple pay later transactions via LazyPay and make the payment for all their tickets at one go, within 15 days from the date of the transaction. LazyPay appears as a payment option at the time of checkout on websites and apps integrating the product.

Ridlr is LazyPay’s first tie up in the public transport space. LazyPay supports other online merchants in food delivery space (Box8, Zomato, FreshMenu), and in movie and bus ticket segment (Abhi Bus, PVR, Jazz Cinemas). Ridlr and LazyPay said that it would extend the ‘buy now, pay later’ facility (to buy tickets) for other mass transit systems as well.

Ridlr already has tie ups with multiple Mumbai transit departments (BEST, NMMT, MBMT buses and Mumbai Metro.) for mobile ticketing and plans to expand in more cities. It has a tie up with Citrus Cash for making bus tickets payments using the Citrus wallet. The company had raised $6 million in July last year. Note that LazyPay was originally owned by Citrus. PayU then took ownership of the product in September last year when it acquired Citrus Pay for $130 million.

‘Credit option helps increase conversion rate’: PayU

Expanding on the reason behind rolling out a credit product, Jitendra Gupta, managing director at PayU India said: “In 2015, $ 4.4 billion in revenue was lost due to 20 – 30% of transactions failing at the payment page. Hence, there was a need for a product which is faster and can give higher conversions.”

While investing $50 million into Lazy Pay in April this year, PayU said it has already clocked over 5,000 transactions with an average ticket size of Rs 600-650 on the premium payment product. In addition to this, 20% of the customers have done 2 or more transactions so far, as per the company’s claims. Payments made for values above Rs 500 – Rs 2500, are generally made for movie tickets, food, groceries, small bills (phone, electricity, water or DTH), etc.


LazyPay competes with similar companies like Simpl and epayLater that provides a pay later option for customers through tie-ups with e-commerce platforms and food tech companies. Flipkart also started testing a Pay Later option for select customers. PayU’s competitor PayPal also has a product which offers credit to buyers to complete a purchase and pay later. PayPal’s credit product represented about 2% of the company’s total payment volume processed or (~$1.62 billion) in the March 2016 quarter.