Health insurance still isn’t a common investment term for many in India. Hence, a huge part of the population struggles with financing their families’ day-to-day healthcare.  

According to health insurance statistics in India, 31% of hospitalizations are financed with loans and 47% by selling assets.

Also, 70% of Indians spend their entire income on healthcare, and 3.2% go under the poverty line due to excessive medical costs. 

As per the Insurance Regulatory and Development Authority of India (IRDAI), Goal 2047 aims to cover 100% of India’s population under insurance by 2047. However, around 40 crore Indians still lack health insurance for various reasons.  

Reasons for low insurance penetration 

As per studies, there are multiple reasons why people may not opt for insurance: 

Talking about high premiums, 4 out of 10 people find insurance premiums very high, discouraging them from getting insurance.  

Consider a family of four – a couple and their two children.

For health insurance cover of ₹10 lakhs, they need to pay a premium of about ₹25,000 annually. As the monthly disposable income of 80% of Indian households is below ₹20000, paying the premium upfront is a challenge.  

How PayU is supporting the insurance industry with EMI integration

PayU understands that customers have buying intent but may be limited by their budgets. We strive to best support our partner businesses in providing their customers with the best affordability solutions. Insurance penetration with PayU’s EMI Integration

Our product suite includes the best EMI schemes – be it on credit cards from 16+ issuers or debit cards from 6+ issuers. People who don’t have credit or debit cards can opt for cardless EMIs supported by 6+ partners.

One of our partner businesses, a leading health insurance brand, trusts us with our Affordability Suite and saw an average m-o-m growth of 133% in conversions.

This is only the start, and we aim to support insurance penetration with PayU’s EMI Integration. Also, empower insurance businesses and help IRDAI achieve Goal 2047.

The post Aligning PayU’s product suite for insurance to achieve IRDAI’s Goal 2047 | PayU EMI appeared first on PayU Blog.

PayU is the preferred payment partner for the biggest travel players

Over 10+ online travel aggregators are integrated with PayU’s Affordability Suite. PayU’s integration has helped them clock a ~30% month-on-month GMV growth via EMI options alone in 2022. Owing to the present affordability trends, travel brands are actively opting for EMI and BNPL options. This not only helps increase conversion but also fuels growth.

For instance, India’s biggest travel aggregator, with an average monthly traffic of 45 million, has shown continuous growth in GMV of 25% (month-on-month) using EMI options under PayU’s Affordability Suite.

Other PayU products leveraged by OTAs

With PayU’s Affordability Suite, India’s top OTAs enjoy the highest coverage of EMI options. This includes credit card EMIs from 17+ banks, debit card EMIs from 6+ banks, cardless EMIs from 6+ providers, BNPL offers from 5 partners, and many no-cost EMI options.

In addition to these, PayU provides best-in-class API solutions. PayU also offers an Affordability widget that enables our OTA partners to provide a frictionless customer experience on their websites and apps.

These include:

Click here to learn more about the product offerings.

PayU’s Affordability Suite has helped players in the travel industry unlock a new level of growth. Moreover, PayU is continuously supporting them with best-in-class product offerings to improve their customer experience.

You, too, can power your travel business with PayU’s Affordability Suite in just three simple steps. Click here to learn how.

The post PayU’s Affordability Suite Fueling Growth in India’s Travel Industry appeared first on PayU Blog.

Consumers today are used to purchasing on credit. There’s been a 220% rise in EMI transactions since the pandemic, a 65% rise in adoption of Buy Now Pay Later (BNPL), discounts, and cashback have been powering purchases for the last decade.

Indian markets are grossly underserved when it comes to access to formal credit, with only 62 Million Indians having access to credit cards. But the consumer of today has the desire to purchase and is looking for credit to increase their purchasing power. In fact, consumers are looking to get these services in real-time on their mobile without having to do cumbersome paperwork.

So, the question is – Is your business ready to offer the flexibility and affordability modern Indian consumers desire?

How does PayU Enable You to be Festive – Ready?

PayU’s Affordability Suite empowers customers to make the purchases they desire with payment modes such as Card Based EMIs, No Cost EMIs, Buy Now Pay Later, and Cardless EMIs.

These can be used for high-ticket purchases such as consumer electronics with EMIs or low-ticket high-frequency purchases such as food orders with BNPL.

You reduce the one-time purchase cost for a consumer, nudging higher order values and increasing sales for your business.

What is PayU’s Affordability Suite?

The PayU Affordability Suite offers:

• PayU Offers Engine: Enables you to create customized offers at a brand, category and even product level across all payment modes. With real-time analytics, you can optimize your campaigns to power more purchases.
• White-Labelled Customer Base: We give you access to 50 million white-labelled users to whom you can show the exact offers they are eligible for across all payment modes. The personalized experience increases the probability of final purchase.

What Do We Do for You?

• Offer the best coverage of payment options in the industry
  
  We enable you to offer affordability options across all payment modes and banks- Credit Card EMIs, Debit Card EMIs, Cardless EMIs, Buy Now Pay Later. In fact, our direct integrations with banks lead to 5% higher success rates on transactions.
• Enable you to offer the best customer experience
  
  A fully digital, mobile- first payment experience enables your customers to opt for EMIs and BNPL within minutes. We also standardize the flow for all EMI transactions by enabling you to capture the OTP on your website, this giving you full control on the customer experience.  
• Offer affordability in retail/ omnichannel stores as well
  
  You can also enable EMI availability using Contactless QR Codes or your POS device at your retail outlets.

How Can You Get Started?

Just reach out to us at affordability@payu.in or your respective Account Managers, to enable the Affordability Suite for your business.  

Co-authored by Dhruv Mathur-Assistant Manager, Content, PayU India

The post How to maximize sales this festive season? appeared first on PayU Blog.

However, offering your customers affordability solutions bring another set of challenges. Direct partnerships with lenders are tricky to say the least and might not be possible between each lender and merchant. There are umpteen operational processes to add to the technological challenges. More so, EMIs in general don’t have standardized technology and processes, making the process quite different for Lender A as compared to Lender B.

At PayU, we give you access to the lenders while keeping the tech and operational integrations to a minimum. We have partnership with leading lenders to give merchants access to 13 credit card EMIs, 5 debit card EMIs, and 2 card-less EMIs, and are continuing to add more lenders to give our merchants the maximum benefit of our affordability suite.

Card networks don’t support EMI as a payment option in their protocol. This might change in future given the growing demand for credit in India (and there is concerted effort at NPCI end for the same). However, the truth of the moment is that issuers have their own ways of supporting EMIs using their existing rails, making it a bespoke integration every time!

So, you have decided to offer your customers the benefit of EMI and other affordability options. Do seek the answer to the following questions before deciding on the approach.

• Does your service provider offer EMI conversion confirmation? Since the EMI conversion is done post transaction completion, one can’t be sure of whether the transaction has been converted to EMI or if there was some error.
  • PayU has set up regular EMI conversion processes with all the banks and makes the information available to the merchants through dashboard
    
    
• Does your service provider offer post order handling (refunds and cancellations)?
  Since EMI conversion is not via card network what will happen to EMI if there is refund? Will the customer still be paying the interest on the loan amount?
  • Just like PayU sends a file for EMI conversion to the bank, it sends a file for EMI cancellation as well whenever there is refund so your customers don’t need to reach out to bank for EMI cancellation
    
    
• Are your EMI rails redundant? Do you have a backup? For credit card processing you have multiple acquirers enabled to get the best conversion rates but what will happen if the only acquirer which supports EMI (we are talking about the issuers who use their own acquiring rails to support EMIs) is down? Transactions will fail and conversion will go for a toss until its back, up again
  • PayU has done direct integrations with HDFC to build alternate rails to process credit cards in case their primary switch, FSS, is underperforming, even on usual days we see 4-5% delta in performance of direct integration vs FSS route
    
    
• Is your service provider giving you the user experience flexibilities, like OTP on your page? Can you provide your customers, a payment experience similar to how it is for credit cards? For example, merchants can capture OTP on their page to reduce the network drop-offs and control the user experience. 
  • PayU allows its clients to capture OTP on their page for EMI transactions as well
    
    
• Does your service provider support auth + capture? Can you do an auth in real time and then capturing the transaction at a later stage for card transactions for EMIs transactions as well? We all know, how real buyer remorse is, and this feature could potentially save substantial amount in PG fees!
  • PayU has been the first in the market to add the support of auth + capture on EMIs transactions

Conclusion

Enabling affordability should be one of the top priorities for your business right now. Covid has led to far too many a disruption to sit on the fence and hope business would thrive. Enabling affordability options could help you acquire customers who may have dropped off because of the higher ticket size and his/her lower propensity to pay higher in current environment. All the evidence points towards affordability being one of the key drivers for buyers. With the new age products of card less credits, you can reach out to the customers in tier2/3 markets who have so far been credit underserved. With a partner like PayU, you can quickly enable these options and be confident of having one of the highest industry coverages with best success rates. So, what’s stopping you? Come, join us and be among the several hundred merchants already enjoying the benefits of PayU affordability products.

The post How PayU affordability suite can help businesses in these difficult times appeared first on PayU Blog.