Credit or loan options online sounds a bit risky from the company’s point of view. The trust of a company on its user needs to be on a different level to pull this off. However, this has changed and how. This credit system has evolved in the last half a decade or so. It has reached a point where many businesses have integrated it and molded it the way they want.
The latest entrant into the credit business is Ola. Ola has integrated a credit option into its application that will allow the users to ride first and pay later. This is a service which is not new to Ola users, however, they have now totally shifted to it in a way which people can pay for many rides together.
The Ola users can book a ride, select an option which says ‘Ola Money Postpaid Invite’. After the ride, they need not pay the amount immediately but will have to pay on the 15th day after activation. That said, one can ride as many times as they want in that fifteen-day window without paying a single rupee but will have to pay the full amount which will be the total of all rides on the fifteenth day. This is a feature which is very useful.
This kind of services are offered by many but every loan or credit based business is different from each other. For example, PayU’s LazyPay is based on the same thing but uses it differently. LazyPay is a shop now pay later service which credits the users with money which is around $420 or INR 30,000. It then allows them to shop with that money and pay it later. This is one of those services. There are around 8000-9000 applications to use these services every day. Flipkart is also one those companies which have used this feature before. It had a feature which would allow users to buy a product and pay for it later.
That said, Ola is not the first one to introduce a feature like this but it can be the most successful one. The feature is only allowed or accessible to 10% of its users currently but the response is terrific as the users have returned to use it again and again. Ola, therefore, have been galvanized to make this feature available for everyone. The company is also thinking about increasing the time period to 30 days for payment.
Ola has taken this step to shake up its ride business and add something new to it. This comes after a stagnation in the ride-hailing business and the other major thing is that this news is right along the lines after a massive investment from Sachin Bansal. Ola bulked by an amount of $21.2 million from Sachin Bansal, the Flipkart co-founder.
Ola is also entering a lending market in a country which adopts to new technology and businesses like a duck to water. This lending business is growing at a rapid pace and the BCG (Boston Consulting Group) has estimated that this lending market is going to reach $1 trillion in the next five years.