Fintech startup Uni temporarily cancels service to living cardholders

This follows the Fintech company’s decision to suspend issuing new cards in June, in response to the Reserve Bank of India’s (RBI) notification to industry stakeholders prohibiting the loading of prepaid payment instruments through credit lines.  

Highlights –  

• Uni, a fintech incipiency immolation buy-now-pay-later outcomes provider, has temporarily ceased servicing card druggies customers. 
• With the most recent RBI regulations on digital lending, we have temporarily suspended card services. 
• Uni indicated that the company’s move will not affect a client’s invoicing or charges. 

Uni, a fintech incipiency immolation buy-now-pay-later results provider, has temporarily halted serving customers being card druggies, bringing its card immolation to a standstill.  

This follows the company’s failure to issue new cards in June, after the Reserve Bank of India’s (RBI) notification to assiduity stakeholders, which prohibited the loading of returned payment instruments (PPIs) via credit lines. 

“Due to the most recent RBI restrictions on digital lending, we’ve temporarily discontinued card services.”  

This implies your card will be inactive for the time being. “We’re working with our banking partners to renew the card services as soon as possible and will keep you updated,” the business said in a message to druggies. 

Your Uni Cash will continue to function normally. It’s the easiest method to get your credit line sent immediately to your bank account.  

To alleviate any inconvenience, we are extending the zero-charge limit on Uni Cash until September 21, 2022. “Check your Uni app for further information,” the letter to Uni druggies continued. 

Nitin Gupta, the founder of Uni, did not immediately reply to ET’s request for comment. 

Uni received one of the biggest Series A investment rounds last December, raising $70 million from investors led by General Catalyst.

Uni’s most recent decision

Uni’s newest decision comes after SBM Bank handed the last blow to card-fintech earlier this week when it advised its card-fintech partners to halt onboarding new customers.

This has affected several businesses in the industry, including partners Slice, Uni, and LazyPay. 

As a result of the move, Slice, the credit card competitor unicorn, has also temporarily ceased issuing new repayment cards but continues to onboard druggies via the Unified Payments Interface (UPI) route via no-cost EMIs and cash transfer immolations. 

LazyPay, PayU India’s lending arm, has also temporarily ceased support for its steal-now-pay-later (BNPL) payment product LazyPlus UPI in the face of expanding nonsupervisory enterprises for card-based credit fintech firms. 

The Fintech firm’s offering

The company’s offering, which will be available in September 2020, would allow drug users to pay over the Unified Payments Interface (UPI) channel using a revolving credit line granted to the consumer. 

LazyPay intended to convert its ‘LazyCard’ service from a debit card to a credit card. In June, it also halted new card admeasurements in response to the RBI’s mandate. 

SBM India has also allegedly conveyed its decision to halt onboarding new clients to Slice and PayU’s LazyPay, payment service businesses, following the RBI’s digital lending rules on August 10. 

In a circular issued on June 20, the RBI barred the loading of PPIs (prepaid payment instruments) through “credit lines.”

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