Freecharge launches Pay Later for its customers
~Provides customers with a Monthly credit limit ~
Freecharge, one of the leading digital platforms for financial services, has launched ‘Pay Later’ for its customers. The product facilitates customers to make payments through a single click for their small ticket purchases. The expenses get aggregated for a month and customers can pay at the end of the month, in a seamless manner. Pay Later can be utilised on both Freecharge’s platform as well as on a network of 10,000+ merchants (online and offline).
Using Pay Later, customers can pay their electricity bills, recharge their mobiles, order food, medicines, grocery online, etc. without the need for any card. Unlike other digital payment options, Pay Later does not require remembering or saving card numbers, loading wallet or any OTP approvals. All the payments can be done through a secure one click process.
Airing his thoughts on the launch, Siddharth Mehta, CEO, Freecharge said, “We have launched this product to increase engagement of our users by providing them a seamless payment product backed by a credit limit. The facility enables our customers to pay for their small ticket purchases both online and offline with mobile being the form factor, rather than cash or cards. With the rapid digitization happening across the board seamless and hassle free payment experience is a very important feature from a customer point of view”
On successful onboarding on Pay Later, customers receive a monthly credit limit of upto Rs. 5,000/- and this usage limit gets enhanced in the future, depending on the customer’s profile.
“As we’re just getting started, we have set a small usage limit till the customers get accustomed to the overall process. We believe this will enable a learning curve not just for the customers but also for us in providing more customised solutions. As things progress, we are open to looking at customer specific options,” added Mehta.
On the face of it, a negligible processing fee and a small interest is levied for usage of Pay Later. However, this interest will be credited back to the customer’s Freecharge wallet in the form of a ‘Cashback’ on the repayment of the Pay Later bill at the end of the month, thereby, ensuring that these charges do not form a burden on the customer.