uni card: Fintech start-up Uni temporarily stops serving existing card users

Uni, a fintech startup offering buy-it-now, pay-later solutions, has temporarily stopped serving its existing card users, bringing its card offering to an abrupt end. This comes after the company suspended the issuance of new cards in June following the Reserve Bank of India’s (RBI) communication to industry stakeholders which prohibited the loading of prepaid payment instruments (PPIs) through lines of credit.

“Due to the latest RBI guidelines on digital lending, we have temporarily suspended card services. This means that your card will be inactive for the time being. We are working with our banking partners to resume card services as soon as possible and will keep you updated,” the company said in a message to users.

ET saw a copy of Uni’s customer communication sent earlier on Friday.

Uni said the company’s move will not result in any changes to a customer’s billing and refunds. “Your Uni Cash will work as usual. It’s the fastest way to transfer your line of credit directly to your bank account. To save you any inconvenience, we are extending a zero fee limit on Uni Cash until September 21, 2022. Check your Uni app for details,” the note to Uni users adds.

When contacted, Uni founder Nitin Gupta did not immediately respond to ET’s request for comment.

Last year in December,
Uni has raised one of the biggest Series A funding roundsat the time racking up $70 million from investors led by General Catalyst.

Discover the stories that interest you

Uni’s latest move comes after SBM bank dealt a final blow to card fintechs, after telling its card fintech partners earlier this week of
immediately stop onboarding new users for its co-branded prepaid credit card product.

This has impacted several startups in the space, including partners Slice, Uni, and LazyPay.

As a development impact, ET also reported on August 19, citing sources that Slice, the unicorn credit card challenger, has also temporarily stopped issuing new prepaid cards but continues to onboard users through the Unified Payment Interface (UPI) railroad via no-cost EMIs and cash transfer offers.

ET had also reported on July 5 that LazyPay, the lending arm of PayU India, has also temporarily halted support for its Buy-Now-Pay-Later (BNPL) payment product LazyPlus UPI amid growing regulatory concerns for credit card fintech companies.

The product, launched by the company in September 2020, allows users to pay through the Unified Payments Interface (UPI) channel from a revolving line of credit issued to the customer. LazyPay was looking to upgrade its “LazyCard” offer from a prepaid card to a credit card. It also halted new card issuances in June after RBI’s diktat.

stay on top Technology and startup news it is important. Subscribe to our daily newsletter for the latest must-have tech news, delivered straight to your inbox.

Comments are closed.