- Bengaluru-based startup solves millennials and millennials credit card problems in India.
- Slice offers a completely free card with no hidden fees or annual fees.
- It also gives users the option of splitting their bills and making payments for up to three months without interest.
- The fintech company has already amassed more than three million users to date.
For every 100 people in India, there are only three credit cards. In contrast, nearly a billion debit cards are used in India today. Basically, Indians have lived much of their life with debit cards, which leaves them with little to no credit score. But it also means that there is an opportunity for higher penetration in the South Asian nation.
That’s what fintech company Slice is about to do – challenge the credit card industry in India. The next-generation payment card offered by Slice, a Bengaluru-based startup, promises to solve these credit card problems for Gen Z and Millennials. Founder and CEO Rajan Bajaj believes the banking industry in India has always considered credit cards as a loan product rather than a payment product. The four-year-old startup said Technological crisis Slice offers a prepaid card with a pre-approved line of credit.
In short, Slice made things easier for a lot more people – even those who don’t have a traditional full-time job – to get a card, and the registration process doesn’t take forever. To date, Slice has already amassed over three million users and is now bringing rewards to her app as she tries to turn the plastic card into a bigger financial instrument.
For Bajaj, perhaps the biggest attraction for users is that they are able to establish credit scores, which would eventually make them eligible for better credit cards from other companies and banks, and allow them to ‘get loans for various purposes. In about six months with Slice, most users have a credit score over 700, it mentionned.
How Does Slice Solve Credit Card Problems In India?
Basically, with slice, the startup targets everyone who is eligible for credit and envisions a $ 400 million market where their credit limit starts at Rs 10,000 ($ 134) and goes up to Rs 10 lakh ($ 13,425). Additionally, Bajaj says the Slice app is designed to be highly interactive, intuitive, and accessible to millennials and Genz alike, helping them truly understand and demystify the intricacies of traditional banking.
Through the slice app, one can have full control over his card – track his spending and repayment schedule to name a few. And unlike traditional credit cards which usually come with a fixed annual fee, Slice offers a completely free card with no hidden fees or annual fees. Customers can literally use the product for free for life if they follow a monthly repayment plan.
To top it off, Slice recently launched a three-month no-charge interest offer, allowing users to slice their three-month card bills for free. Bajaj said it was the “longest interest-free installment offer” in the industry, with no “hidden or additional charges”. In short, slice card users can get up to 90 days of interest-free installments.
The fintech branch has also launched “slice rewards” which offer up to 2% rewards on every card transaction and are instantly redeemable for cash. Bajaj Told Financial Express online that they “worked with many brands like Amazon and Flipkart for two years on an EMI provision (equal monthly payment) without charge. With the introduction of these two new features, slice members can complete transactions at five million merchants that accept Visa. They can also convert their monthly bills into three month installments with no additional fees like hidden charges or GST.
“After seeing the success of our free EMI products with no hidden or additional fees, we believe it is time for the industry to start viewing credit as a consumer product with Facebook, Google and Instagram competing. Opposed to pushing it as a consumer loan product, ”Bajaj said.
As reported by TechCrunch, Bajaj said May of this year was its best month since its inception, and June saw 25% growth. The startup, which provides credit limits to users through its own balance sheet, said it will roll out the new funding to develop more features for customers. Another notable advancement is that within six months of joining Slice, more than 65% of members’ credit scores soared to 730, he added.