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CashFree partners with Ola Money to offer deferred payments

Payments firm Cashfree has partnered with Ola Money to launch a deferred payments service which will let users pay for products they purchase later, through a short term credit. The loan can be between Rs 1500-20,000 depending on the credit profile of the user, and has to be paid within 15 days. The service is meant for users who do not have a credit card, or do not use online banking services. Ola has been operating its own delayed payments service for riders 'Ola Money' (rechristened from Ola Credit) since April 2017. Ola Money Postpaid gives select users 7 days' credit; as of July this offering could be used only to pay later for cab rides. Cashfree's numbers 5000 merchants 2 million transactions per month 30% rise in transaction volumes every month, expected to touch Rs 2500 crores per month by end of FY2019. Deferred payments services by other providers Earlier in March this year, MakeMyTrip launched a 'Pay Later' for travel payments for select users, in partnership with Bajaj Finserv. In July 2017, LazyPay partnered with Ridlr, offering credit for multiple transactions, which could be cleared out at once after 15 days. In June 2017, IRCTC partnered with a Mumbai-based company 'ePayLater' which offered 14 days' credit to customers. Deferred payments services differ from micro-lending services which offer instant loans. Deferred payments apps like LazyPay underwrite the transactions carried out by customers until they pay after a short while, usually upto a fortnight. Micro-credit offerings like ICICI Bank's "pay later" are loan…

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