The streets of Koramangala, among the largest communities in Bangalore, are plastered with hoardings and banners of digital payment services. Every few steps, you discover a bank, and workplaces of fintech start-ups.
When Mohammed Nayeem wanted to get a credit card, he understood his options were restricted. He applied for a charge card at RBL Bank, a Mumbai-headquartered bank that has actually been around for more than 70 years. In the days that followed, he answered a lot of their questions over telephone call and supplied them with a variety of documents.
The calls kept coming, however the card never did.
Nayeem works as a freelance interior designer and earns approximately $580 monthly, he informed TechCrunch in an interview last year. This is more than enough for a lot of banks in the nation to release him a credit card, the truth that he does not have a traditional kind of job was off-putting to all of them.
Tens of millions of people like Nayeem in India today can’t get a credit card. They have actually lived much of their lives on debit cards and with little to no credit score. There are close to 1 billion debit cards in usage in India today, but only about 50 million charge card in flow. Even as scores of start-ups today are attempting to bridge this gap, really couple of are serving the young market.
Ultimately, Nayeem came across a startup called Slice, which provided him with a Slice Card that for all purposes and intents functions as a charge card. For more than a year now, he has actually been utilizing Slice’s offering, and his experience has been “fantastic,” he told TechCrunch.
Slice deals a pre-paid card that comes with a pre-approved credit limit, Rajan Bajaj, co-founder and CEO of the four-year-old startup, told TechCrunch in an interview. The Koramangala-headquartered start-up focuses on individuals like Nayeem– young demography comprising mostly of trainees, freelancers, start-up employees and blue-collar employees.
Bajaj said more than 250,000 consumers utilize Slice’s card today. In the course of a month, a typical user carries out about 10 transactions to digital services, such as Swiggy and music apps, and spends about Rs 10,000 ($132). As users invest more, Slice boosts their month-to-month limitation to approximately Rs 100,000 ($1,320).