After Slice, LazyPay updates terms to comply with RBI order; temporarily halts BNPL service
PayU-owned LazyPay, in a message on its platform, asked customers to accept new terms, failing which all transactions would be blocked.
-owned has suspended its Buy Now, Pay Later service to comply with the recent directive of the Reserve Bank of India (RBI), days after fintech startup updated its terms of usage on its platform.
In a message, LazyPay asked its customers to accept its updated terms, failing which it said it would block users from carrying out transactions on all of its products.
"To comply with the latest regulations, we need to block your transactions on all LazyPay products from today. To continue using LazyPay, please accept the updated T&Cs now," the message read.
Earlier in June, the central bank barred non-bank wallets and pre-paid cards from extending credit lines via their products to users, and said these practices should "be stopped immediately."
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Recently, Slice updated its terms and conditions, saying it would levy a 36 percent interest rate for loan repayments made in more than one instalment—a sharp departure from its pay-in-three repayment strategy, which allowed users to split their payments at no extra cost.
Other BNPL service providers, including Paytm Postpaid, , , , and , among others, declined to comment on the development.
LazyPay started as the consumer brand of Citrus Payments, and in 2016, it got acquired by PayU for $130 million in an all-cash deal.
Edited by Suman Singh