Acquisition project | Lazypay

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About the product -

Lazypay is a B2C BNPL (buy now pay later) platform which offers credits with multi-model use cases such as

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1. Check out in 1-click: Paylater is based on their integration with popular 250+ channels & 45K+ online stores, they offer a quick payout option with 15 days of credit*. The USP is no OTP or PINs, quick settlement in 15 days with no hidden charges and integration of payment options with multiple platforms.
2. Pay utility bills with credit: Billpay is based on multiple merchant bill pay integration, tracking & one-click payment of bills. It is available only to select existing LazyPay users & they get allocated amounts which eventually are used to pay multiple bills with one-place tracking & timely reminders.
3. Personal Loans: Xpressloans are the larger size credits with no collateral (up to 5 lakhs). With quick 5-minute approval, simple KYC, bank details, setting up auto-pay and "signing a loan agreement"(e-mandate).

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*Note - With KYC they offer a limit of 30 days (double the normal billing cycle)

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Problem Statement - 🤔

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Hence the Aha! moment is where users get no OTP, no number details from credit cards and BAM! - payment is successful

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User Journey😅

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Understanding the user👻:

Interacted with the 4 types of users which can be bucketed under -

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User 1: -

Name - Ram Ranjan 🧑‍🦰

Age - 27

Income type - Salaried

App use time - 4 years

Vertical used - Paylater; Billpay

Pain Point - Want fast 1 click payments; no OTP for small transactions

App features - Integration with popular merchants - Food, Groceries; One-click payment; Tracking of small bills

Issues - Support in case of failure of transaction/partial transaction, No date extension, multiple calls to pay the bills

Suggestion - Transparency on how users are selected for Billpay vertical

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User 2: -

Name - Dave 🧓

Age - 36

Income type - Salaried

App/Platform use time - 5 years

Vertical used - Paylater

Pain Point - For small transactions such as food orders - want hassle-free transactions;

App features - Autopay enabled

Issues - Low visibility on partner apps in comparison to competitors, concern about CIBIL score, late charges not visible, option to exit permanently

Suggestion - Roadmap on how the limit could be increased

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ICP Time 👨‍👩‍👧‍👦

Based on the specific user interviews, the following are the Ideal customer profiles (ICP) -

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Users are sometimes confused with the core value proposition of the product. They feel that if this platform is offering the BNPL, getting a pop-up for cards is a bit confusing. Also, they seem confused with credit amounts with loans and have a concern if their CIBIL score gets impact once they provide the details. This is something Lazypay might be acting after RBI financial guidelines (in recent years) but something to be watchful of (in comparison to competitors)

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Competitor -

This segment has many operators & also gets tough checks from the financial regulator. While some like Zestmoney had to close their operation, others like Simpl are surviving and thriving.

In BNPL segment -

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In card-based BNPL service -

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Competitor landscape -

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Why Early stage company -

While some competitors (like UNI) are focusing on their card as a core product, their product has also solved the problem of credit crunch by advance salary credit for 15 days. Similarly, Zest has also been into solving the credit crush but without entering the card market by simple EMIs. Whereas Simpl has been the 1-tap pay leader, it has also focused on positioning itself to give a nudge by going for the product. Lazypay has been the combination of the products of the competitor with the core product now being a loan. Along with 1-pay feature on brands and merchants' expenditures, they also have a feature to pay bills on their platform which takes a lot of recurring expenses. Hence, it can be considered as the stage of early scaling stage.

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Now the total market size is around

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From all channels, the total revenue estimation in a year is around 50 crore

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Acquisition -

ICP Prioritization - ICP 1

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Channel Prioritization

Brand Integration, SEO/ASO and Blog

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Channels (existing)

1. Organic - They have been in this segment since 2017. Being the oldest, they have organic word-of-mouth marketing. Also, their 1-tap payment is pulling lot of other customer to try out their new core product.
2. Discovery -
3. 1. Who? Those who are in need of instant credit; want 1-tap solution for payment
   2. Discovery? As Lazypay cannot exist in isolation. They are the payment integrator and loan dispersal app. 1-tap payment integrator through partner gives them visibility. Also, someone in need of an instant loan discovers it. Though their SEO, ASO are not optimized. Here Kreditbee & Simpl are leading the chart.

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3. Product Integration - The majority of the marketing happens when users get used to this getaway or see this while checking out. Eg - Zomato, and Swiggy push for coupons which have heavy discounts. The user tends to see this a new user gets on-boarded.

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Hence, as the discount size is quite huge (almost 50% of the order), people have tendency of paying it through lazy pay.

4. Social media - they are trying to create a presence where they want the user to land on their app/website.

This is in aim to increase the user base on the app and try the feature.

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Experiment -

How to prioritize

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Product Integration -
Since one of the core product preposition is to give users the feature of BPNL 1-tap pay. And this feature also has a pull factor for core product preposition of loan or xpresscash; this can give a good amount of visibility and new users.

As per our ICP - we can focus on Manali and see what are the small expenses that occur in day-to-day business.

As per the current strategy, they are only present with Myntra and Meesho. For expanding the market they can tap Ram by collaborating more with D2C brands and expanding their offline present functionality also. Collaborating with ride apps like Rapido (Simpl did it already) and even expanding this to OTT apps.

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The idea is to make users use it for the first time, experience it and finally achieve the Aha! moment. Then parallelly, explore the other products.

Improving the social media presence -

Right now, one of the aspects where Lazypay is really struggling is social media presence

To give a comparative analysis - Simpl has 200K followers on Linkedin. But this also is struggling on other platforms.

So the main objective should be to make the presence on social media strong.

As Manali in our case spends a lot of time on social media, having a presence online would give her trust. And this would also make her updated of the recent developments that are happening for the app.

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This also has a low CAC and high user acquisition strategy.

Start by

1. Incentivizing people to follow the insta/twitter - Since users on this app have very low attention grasp. staying updated and promoting products with the recent news would be excellent. A recent example would be - comment puns around things like the India Vs Pakistan match; current affairs, popular TV series (amazon handled with lockey) memes jokes which have product significance around them. Also, engage people with content on reels.

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2. Since LinkedIn is an important page for user onboarding as well as merchant onboarding - This page also needs to be updated. User interviews of employees who are working on the product, how exactly is the new feature immersive to the user, posting links of blogs with some context, brand partnerships, offline events videos and many more can be posted. Idea is to make the ecosystem for ICPs like Manali & Naman both aware
   

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SEO needs to be improved. No keyword apart from lazypay makes it visible. As their core product is insta loan and fast OTPless payment, these words need to appear on their app and website.

2. 1. Google/Bing - Their website has no quick key word search optimization. Keywords ranking such as "1-click payment", instaloan, small expense tracker, billpay and other words should be ranked up. Also, these words, hashtags should be used in engaging content on social media.
   2. ASO - Neither on the app store nor on Play Store it was the first result. Apart from optimizing on the keywords, they need to spend on the ads so that people are able to reach to them.
   3. Blog/Articles - Relevant articles on the website involving user education and also with context optimizing the SEO.

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