Shaping LazyPay Finance Marketplace

LazyPay sat on a 33 million registered customer base across LazyPay and PaySense — growing at 12 million users per year. But beyond BNPL and Xpress Cash loans, there was no structured way to cross-sell or retain users through additional financial products. The business hypothesis was clear: build a marketplace of curated 3rd-party financial products (insurance, loans, cards, investments) to increase Customer Lifetime Value, diversify revenue with zero capital risk, and boost MAU and retention.

The challenge was that "marketplace" can mean anything. Before a single pixel was designed, my team needed to answer a harder question: what role does each financial product actually play in a user's life, and how should they be positioned within a credit-first app?

This case study covers how design research — specifically a 25-person depth interview study, prototype testing, and a structured design sprint — created the foundational positioning framework and product direction for the marketplace.

The Business Case

The marketplace wasn't a feature — it was a strategic bet. The business rationale rested on three pillars.

Large customer footprint: 33Mn registered users across PaySense and LazyPay, growing at 12Mn annualized (LazyPay 7Mn, PaySense 5Mn). This existing base was the distribution advantage.

Monetization potential: Increase CLTV by offering curated 3rd-party products — insurance, cards, loans, investments — with no capital risk. Revenue was projected at $4.1M (FY25) → $6.5M (FY26) → $9.7M (FY27) at a 53% CAGR.

Engagement flywheel: Engaged users showed 7x higher X-sell rates for Xpress Loans. The marketplace was the hook to get users opening the app beyond repayment cycles.

Impact

• Embedded insurance: Launched without a single care team escalation, achieving 100% implementation across the repayment cycle
• Homepage CTR: The revamped homepage (informed by V1/V2 prototype testing) increased click-through rates across major verticals and repayment touchpoints
• Repayment rates: The new repayment selector design showed a 5% increase in repayment rates
• Revenue trajectory: Marketplace projected at $4.1M (FY25) → $6.5M (FY26) → $9.7M (FY27) at 53% revenue CAGR and 65% TP CAGR
• Engagement flywheel: Engaged users demonstrated 7x higher X-sell rates for Xpress Loans

Research Foundation

The Positioning Study

Before marketplace design began, we needed to understand the competitive landscape of credit products from the user's perspective. The market was crowded with personal loans, credit lines, BNPL, and credit cards — all with similar propositions but no clear differentiation in the user's mental model.

We conducted 25 depth interviews of 60–90 minutes each, generating approximately 1,500 minutes of qualitative content. The sample included males and females, ages 20–35, fixed income between ₹3–10 LPA, across Bangalore, Chennai, Hyderabad, Mumbai, and Kolkata. Users were segmented into Personal Loan users and Line of Credit users, further split by whether they also used BNPL or credit cards.

The Credit User Profile

A consistent archetype emerged across all interviews. The typical credit user comes from a regular middle-class family, is either the chief wage earner or in line to become one, has completed basic education (one degree — BCom, BSc, BA, BBA), and works at a middle level of a company in functions like sales, HR, IT, or customer support.

Their financial aspiration is simple: own a house, a better vehicle, holidays with family. But their income falls short — forcing them to become creative with limited resources, constantly looking for ways to save, invest, and multiply money.

"Pinches most when you need money and don't have it"

"Have to support retired parents… money needs to multiply for the future"

The critical insight: Their aspirations are repeatedly broken by unexpected expenses. This is when they turn to credit — not as a lifestyle choice, but as a safety net to protect their painstakingly built savings.

How Users See Financial Products

The research revealed that users have a clear (if subconscious) mental model of money management organized around four pillars: Savings, Investments, Payments, and Borrowings. Each serves a distinct emotional need.

This framework became the backbone of how we'd position marketplace products — not as standalone offerings, but within the user's existing financial wellness journey.

Product Positioning Framework

The most valuable output of the research was a clear articulation of what each credit product actually does in the user's life — distinct from what the industry markets it as.

BNPL → Budgeting Tool

Buy Now Pay Later has become synonymous with "one tap payment" — easy, fast, convenient. But the true role in the user's life is as a budgeting tool. Without BNPL, the user would either burn a hole in their pocket or push the expense entirely. BNPL helps them control how much they repay, so they continue to spend with less worry.

"When friends are coming over to chill and I have no money in the bank, that time I use Slice. It helps to manage…"

Positioning: BNPL manages your monthly budget tightly, so you can spend freely.

Personal Loan → Emergency Stash

Big life events are predictable and plannable. But unexpected expenses — a broken phone, a shattered laptop screen, house repairs — throw users off course. App-based loans are chosen over bank loans because they're faster and require fewer steps. Users literally Google "fastest loan" and "easiest loan online."

"Did not want to touch savings, better to pay on EMI"

Positioning: Personal Loan — your emergency stash when unplanned expenses come knocking.

Credit Card → Status + Ownership

Despite users being aware that credit cards can be costly, cards bring maximum sense of ownership among all credit products. The card is personalized, can be self-designed, and usage can be dictated. This is why physical cards are chosen even when virtual ones offer the same benefits.

"I prefer credit card since there are many benefits… thoda accha lagta hai"

Positioning: Card — a strong sense of ownership, a feeling of pride.

Line of Credit → Online ATM

Line of Credit provides continued liquidity. Its usage pattern mirrors a credit card — not used for small expenses, only the required amount is drawn and the balance is left. However, the research uncovered significant confusion: even active LOC users couldn't articulate the term "line of credit" — they called it "bigger credit limit" or "a different type of loan." Rate of interest mechanics and withdrawal limits were widely misunderstood.

Positioning: Credit Line — your online ATM, since no one really carries cash.

Design implication: A clear visual manual was recommended at LOC launch to address terminology confusion and product mechanics.

Behavioral Insights That Shaped Design

Effort Reduction Wins Every Time

Users say rate of interest is the deciding factor. But in practice, they choose the loan plan that looks simple — one that clearly shows how much to repay and on which date. A Cred user completed the entire loan application simply because the EMI calculation was systematically displayed.

"Chose Cred Cash because it was easy"

Design principle: Reduce cognitive load. Show the number that matters (monthly repayment), not the number users say matters (interest rate).

The Loan Amount Is the "Aha!" Moment

When users see they're eligible for the amount they need — or more than expected — it becomes a decisive moment. This experience turns negative when users misunderstand "eligibility" as "approval," or when the approved amount differs from what was initially pitched.

Design principle: Lead with the loan amount in the UI. Make eligibility feel like a reward, not a filter.

The 30-Day Cycle Is Sacred

A 30-day repayment cycle is a deeply formed habit. Changes to this — even beneficial ones like giving users more control — have to be repeatedly communicated to register. Users whose cycle was changed without clear communication blamed the brand for missed payments and extra charges.

"Month end means bills… cycle set hai… isme yaad rakhne ki kya zaroorat hai?"

Design principle: Never surprise users with billing cycle changes. Over-communicate schedule modifications.

Personal Recommendations Break Trust Barriers

Across every financial product category — investments, loans, apps, savings, crypto — the first trial is based on a personal recommendation. This was the single most consistent finding across all 25 interviews.

We developed a recommendation framework specific to LazyPay: instead of asking the borrowing friend to take a loan, target the non-lending friend. "We know it feels bad to say no to your friend. But we can say yes on your behalf." This empathetic approach doesn't exploit users for referrals unless their friend has actually asked for money.

Design principle: Build referral flows around empathy, not incentives.

Prototype Testing

As part of the app revamp to support marketplace products, we tested two homepage prototypes with 16 users across credit product segments (BNPL, Personal Loans, CC, Line of Credit users from Navi, Bajaj Finserv, Cred Cash, Cashe, Zest Money, Early Salary, MoneyTap).

V1: Clean & Simple (Without Insurance, BBPS)

What worked: Clean, visually better. This met the hygiene expectation of "an app should look simple."

What didn't work: Missing the star element to communicate "full credit experience." Users who didn't open the app specifically looking for credit couldn't intuitively understand what LazyPay does. They only discovered features when scrolling. "Bohot ghuma ghuma ke dikhaya hai."

V2: Category Panel (With Insurance, BBPS, PIP)

What worked: The category panel was the breakthrough. It acted as the star element in communicating a multi-credit app — giving users a clear idea of all services available without scrolling. All small and big financial needs could be met in one place.

"They give headings of everything. It's easily understandable"

What didn't work: The Picture-in-Picture element was seen as a distraction — an ad to close. Users only realized it contained product information when they accidentally clicked it.

"There's something black window coming, it's blocking"

Key Findings

• Product comprehension was low for Xpress Cash and My Card — both in terms of icons and terminology. "My Card" was mistaken for a profile section. Xpress Cash was unclear as a loan product until the landing page.
• Merchant banner for PayLater created perception of ubiquity — familiar merchant logos built trust and usage intent.
• "Unlock full credit experience" banner was unclear — users couldn't predict what would happen. "Maybe limit will increase? Maybe for the loan?"
• First-time users looked for visual trust indicators — RBI compliance badges, association with known brands like VISA. These needed reinforcement at multiple touchpoints.
• Limit separation between PayLater and Swiggy was confusing — required FTUE (First Time User Experience) consideration during Swiggy onboarding.

Verdict: V2 won for cueing variety and better comprehension, but needed V1's visual simplicity. The final direction merged the category panel's information architecture with cleaner visual execution.

The Design Sprint

Armed with research insights and prototype learnings, we ran a structured 8-day design sprint in December 2023 to define the marketplace direction.

Sprint Timeline

1. Days 1–2 (Dec 4–5): Diverge on concept directions
2. Day 3 (Dec 5): Converge with stakeholder editing
3. Days 4–5 (Dec 6–7): Diverge on design paths for chosen concept
4. Day 6 (Dec 7): Converge on design path
5. Day 7 (Dec 8): Final stakeholder editing
6. Days 7–8 (Dec 8–11): Build pitch presentation

Competitor Benchmarking

We analyzed six competitors on a FigJam board: Cred, INDmoney, PhonePe, GoMechanic, Park+, and Lemonade Insurance. Each was evaluated on how they structured multi-product offerings, discovery patterns, and cross-sell mechanics within their apps.

Core Design Principles

Three tenets governed all design decisions:

1. Mobile first — every interaction designed for thumb-zone and single-hand usage
2. Experiential, not commoditized — the journey should feel curated, not like a product catalog
3. Loan insurance products are always embedded — insurance in the loans journey, never standalone discovery

Solutioning Order

The sprint followed a deliberate sequence:

1. Which categories sit well together vs. which don't
2. Relative priority by revenue: embedded insurance > insurance cross-sell > cards > other insurances and loans
3. Historical insights inventory (e.g., cards' part-native flow driving significant conversions)
4. User segmentation mapping: BNPL, No BNPL, BNPL + Xpress, No Xpress, No BNPL and No Xpress
5. Layout architecture for product offerings across user types

Marketplace Product Architecture

The final marketplace covered four categories with distinct commercial models and positioning strategies.

Insurance

• Embedded (high priority): EMI Protect (1% of loan amount, 60% PayU share), Hospicash (₹15, 60% share, sachet product on BNPL repayment), OPD Insurance
• Cross-sell: Motor 2-Wheeler (₹1,500 ATS, 35% share), Motor 4-Wheeler (₹8,000, 35%), Health (₹12,000, 40%), Term Life (₹15,000, 55%)

Embedded insurance was the revenue engine — attached to all loans in opt-out mode, it required zero user discovery and generated the highest margins.

Lending Marketplace

Personal Loan (₹1.5L ATS, 2.5% share), Short-Term PL (₹28K, 4%), Gold Balance Transfer (₹1.5L, 1%), Home Loan BT (₹14L, 0.3%). Overlap products (PL, STPL) were only offered to users declined from Xpress and PaySense — preventing cannibalization.

Cards

Cross-sell partnerships with RBL, Kiwi, IDFC, and One Card at ₹1,400 per card. The key design insight was that part-native card application flows (where portions of the journey stayed within LazyPay's UI) drove significantly higher conversions than full redirects.

Investments & Engagement

Digital Gold (₹500 ATS, 1.5% commission) positioned not as a standalone product but as rewards fuel to drive engagement loops. Fixed Deposits and Mutual Funds were planned for later phases.

Product Roadmap

The roadmap was phased across 18 months:

User Expectations Framework

The research distilled user expectations from any financial app into three clear demands:

1. "Tell me what you have" — Variety. Users want to see the full range of options upfront. This directly informed the V2 category panel design.
2. "Tell me what to do" — Clarity. Every screen should guide the next action. No ambiguity in CTAs or product descriptions.
3. "Reduce my work/steps" — Smart. Users subconsciously choose options that reduce effort, even when they say otherwise. Auto-fill, pre-approval, and single-tap actions.

These three principles became the design team's evaluation criteria for every marketplace screen.

Team & Process

The marketplace initiative required scaling the design team's involvement across multiple product verticals. As Sr Director of Design, I managed a team that included Senior Design Managers (Rajiv Priyadarshi, John Thachil), a Lead UX Writer (Mohana Das), Senior UX Researcher (Apoorva Shetty), and product designers — coordinating across product, business, engineering, and analytics.

How Design Led the Direction

• Research-first approach: The Positioning Study (Oct 2022) was commissioned a full year before the marketplace strap was formalized, ensuring design had the deepest understanding of user mental models
• Prototype testing before PRD: We tested homepage concepts with users before the product requirements were finalized — letting user behavior shape the spec, not the other way around
• Design sprint as decision engine: The 8-day sprint compressed months of back-and-forth into a structured diverge-converge process with stakeholder buy-in at each gate
• Embedded insurance design: John Thachil's team rolled out embedded insurance without a single escalation to the care team — 100% implementation across the repayment cycle

Cross-Functional Coordination

The design team worked with Product (Chandrika, Saranya, Sabarish, Kavya), Engineering (Ashwini Kumar), Business Analytics (Utkarsh Pandey), and User Research (Komal Dave) to ensure the marketplace direction was grounded in both user insight and business viability. The research team maintained a centralized insights repository in Confluence for ongoing reference.

Design Decisions & Rationale

Why the Category Panel Won

The prototype test made it clear: users don't scroll to discover financial products. They need a scannable, upfront menu of what's available. The category panel in V2 solved this by acting as both navigation and comprehension — communicating "this is a multi-product financial app" in a single glance. But we stripped the PIP (Picture-in-Picture) element that users found distracting and intrusive.

Why We Embedded Insurance in Repayment Flows

Insurance has a discovery problem in fintech — users don't come looking for it. By embedding insurance products (Hospicash, EMI Protect) in the repayment flow as opt-out defaults, we solved for both discovery and conversion. The repayment moment is when financial awareness is highest — making it the ideal context for a protection product.

Why Overlap Products Were Gated

Personal Loans and Short-Term PLs in the Lending Marketplace would directly compete with Xpress Cash and PaySense — LazyPay's own products. The design decision was to only surface these marketplace offerings to users who were declined from in-house products, turning a rejection into a recovery experience.

Why Trust Indicators Were Non-Negotiable

First-time users explicitly looked for RBI compliance badges and brand associations. In a market flooded with fraudulent financial apps, visual trust signals weren't optional — they were conversion-critical. We recommended reinforcing these at multiple points: splash screen, homepage, product landing pages, and KYC flows.

My Role

As Sr Director of Design at PayU Credit, I led the design strategy for the marketplace from research through to product direction. I commissioned and oversaw the Positioning Study that became the foundational document for how LazyPay understood its users' relationship with credit. I directed the prototype testing that resolved the homepage architecture debate, ran the design sprint that produced the marketplace concept direction, and established the design principles that governed every screen.

I managed the design team through this initiative — coaching managers like Rajiv and John on balancing IC work with people management, creating growth paths for researchers like Apoorva and Komal, and ensuring content strategy (Mohana) was integrated from project kickoff rather than bolted on at the end. The marketplace work became a vehicle for the team's growth as much as a product initiative.