Now Indian Railway Catering and Tourism Corporation (IRCTC) have the option to pay later. Mumbai-based fintech company ePayLater has partnered with IRCTC to offer the ‘buy now, pay later’ service that allows users to purchase railway tickets without making a payment at the time of the transaction. The payment can be done within next 14 days of buying a ticket.
A first-time user needs to provide details such as email id, telephone number and a link to Aadhaar or PAN card. Post that the customer needs to enter just a one time password. By providing customers this deferred payment option, we not only simplify the checkout experience, but also help them manage their short-term income-expense mismatches better,” Co-founder said.
Uday Somyajula, the cofounder of ePayLater, said their primary focus is to leverage data science to solve real life challenges.
“The eligibility of a customer will be checked through past transaction history, social media and other parameters,” said Akshat Saxena, the cofounder of ePayLater. “The process will work similar as to giving a personal loan. If the individual fails to pay, legal action will be taken.”
IRCTC records almost 6 lakh transactions per day and ePayLater aims to capture 5 per cent of this volume in the next six months.
Another company Simpl also gives users the buy now and pay later option. Simpl, however, has two billing cycles 1st and 16th of each month. The company has more than 30 merchant partners including NYKAA, JustRide, Faasos , BookMyShow, FreshMenu, Holachef , Voonik etc. Both the companies charge merchant partners a fee for each transaction to make revenues. However, in the case of late payments, Simpl claims it charges a penalty of up to Rs 250 while ePayLater charges a flat Rs 20 or a penalty rate of 36% per annum for the number of days the amount is overdue.
ePayLater was started in 2015 and has tied up with merchants such as PVR, Crownit, VaerOrganic, IndustryBuying, Power2SME, Tolexo, Bizong and Bizzgain. In June last year, the company raised $2mn in seed round funding from high net individuals.