The benefits of a credit card get spoiled if the cardholder starts overspending and eventually fails to pay the entire bill on time or the minimum amount within the due date.
The benefits of a credit card get spoiled if the cardholder starts overspending and eventually fails to pay the entire bill on time or the minimum amount within the due date. As the rate of interest and penalties on outstanding amounts of credit cards are high, the mismanagement of cards may wrack a cardholder.
To avoid this, cardholders must not exceed their paying capacity and try to pay the entire bill or at least the minimum bill amount on time.
However, tracking all the transactions may not be possible for every cardholder, resulting in the total amount spent crossing the paying capacity.
Uni Pay 1/3rd Card
To make things easy for the cardholders, Uni Pay has brought 1/3rd card, which is India’s first pay later card that automatically splits transactions into 1/3rd with no interest. It aims to intuitively solve the problem of short-term liquidity without burdening consumers with high interest fees.
It also offers consumers the flexibility to convert transactions to ‘Pay in Full’ at the end of the 30-day free credit period and in return consumers can enjoy a 1 per cent reward in the form of cashback.
Who and how one can avail this card?
Anyone between the age of 21 and 60 years and who has a presence in the credit bureau with the bureau score of 760 and above (also known as super prime customers) is eligible for applying for Pay 1/3rd. The card is available for both Android and iOS users. Customers have to simply download the app and apply for the card.
Powered by Visa, Pay 1/3rd is both a physical and a digital card. The physical card works across retailers who accept Visa cards. The card is delivered to the user typically within 4-5 days of application while the digital card can be used instantly post onboarding for online purchases.
Pay 1/3rd card provides a credit limit in the range of Rs 20,000 to Rs 6 lakh. It varies from customer to customer and their risk profile.
Revenue model/ interest, late charges
The revenue of the company predominately comes from interchange, cross-sell revenue, subvention income from merchant partners, interest income when a customer converts transactions into longer tenure EMIs and late fees.
If the customers are converting their bills into longer tenure EMI or instalments then the interest charges of 14-18 per cent will be applied. In Pay 1/3rd, the minimum due amount has to be paid in every billing cycle, or else the borrower will have to pay late fees which are decided based on the slab.