How startups like ePayLater are successfully enabling those without any CIBIL record

ePaylater is a ‘Buy Now, Pay Later’ solution through which customers can get access to a credit limit to make faster purchases. Once signed up, a customer can avail a credit limit of upto Rs. 20,000. A 14-day interest-free period is provided from the date of purchase to settle the payment. Founded in December 2015, its aim to make credit accessible at the point of sale to millions of Indians and also to optimize the digital payments experience. ePayLater made the entire process of credit underwriting to disbursal a seamless, reliable, and convenient experience for users. The founders Akshat Saxena, Aurko Bhattacharya, and Uday Somayajula got together to deploy the latest cutting-edge technologies to the problems of payments, data gathering and data analytics to create the ePayLater solution.

Loans to those without CIBIL record

ePayLater leverages sophisticated algorithms that have the capacity to cater to wide and differing audiences in an inclusive way. For instance, it works with different merchant partners that cater to very different target groups and markets. IRCTC sees traffic from the biggest metros and the smallest hamlets and gets customers of different ages that often lack credit histories. In spite of these challenges, ePayLater’s algorithms have been able to determine their creditworthiness using alternate methods to gather and analyze the data available. It uses advanced machine learning techniques to do real-time credit assessment by leveraging data such as buying patterns with the merchants, digital footprint, social media information and device information.

Availing Benefits

To be able to use ePayLater, one first needs to complete the signup process. The platform ask for certain basic details including which one should be able to fill in a couple of minutes. On the basis of the information provided, it assigns a spending limit, which can be used immediately after completing the signup. Signing up on ePayLater can be completed in 5 easy steps:

• Click on 'Sign me up' on the home page.
• Enter your Mobile number and Email Id.
• Enter the OTPs received on your Mobile Number and Email Id.
• Provide us with at least one Government ID (Aadhar/PAN card).

One can then use the spending limit to shop with any of its partner merchants. Its services are provided subject to the application of the User being accepted and approved. ePayLater Services are available for use only within India.

Buy Now Pay Later

ePayLater can be used across any of its partner merchant portals including IRCTC, PVR, Box8, Croma, Travelyaari, Mojo Pizza, eVoucher India, Ticketnew, Sports Uncle, Oyefood, Foodzap, MadBananas to name a few. One can also use it to transact with merchants that accept UPI. Currently, ePayLater UPI can be used on Amazon, Flipkart, Cleartrip, Jabong, Myntra, Uber, Ola etc

The process is extremely easy. Once a credit limit is sanctioned against the account, one can start using ePayLater with its partner merchants. Add items to the cart, go to checkout, choose ePayLater amongst the payment options, enter the OTP sent to the registered mobile number and that is it, the transaction is done! In case ePayLater is not directly integrated customers can still use the ePayLater UPI solution to transact on any portal.

What makes the use of ePayLater more convenient, quick and seamless for users is that they needn’t type in their bank account/card details or use other modes of payment during the check-out process. The transaction can be completed with just a tap. Further, the users can easily make the repayment at a later date through simple and minimal online steps.

Handling Defaults

It is understood that it is human to miss payment deadlines and overlook reminders. Hence, ePayLater gives its customers the leeway of a few more days beyond the due date to make the payment. However, the customer is charged penal interest for such period at the rate of 3% per month on a pro-rata basis.

Users are notified multiple times via email and SMS before the due date and periodically thereafter. In the remote case of non-payment, the user's ePayLater account is deactivated. Just like an electricity bill or any utility bill, any amount payable to ePayLater is legally enforceable.

However, the platform strongly recommends that customers settle the payment before the due date to avail of higher limits and other offers that it offers to loyal customers. Non payment of dues on time may impact bureau record of the customer and affect his/her ability to avail loans in future.

Once signed up, a customer can avail a credit limit of up to Rs. 20,000. The initial limit may be lower but as the customer builds up a good track record with more transactions and timely payments, the limits continue to be increased till a max of Rs 20,000.

— Aurko Bhattacharya, Co-Founder at ePayLater