• Arjuna Gomatam

Slice: Unique Consumer Problems and How FinTech Firms Are Solving Them

While credit cards may seem like a convenient and ubiquitous method of payment, their usage in India remains reasonably limited. While in 2019, the number of users touched 52 million, there are only 3 credit card holders for every 100 people in the country. In contrast, there are around 826.8 million debit card users in India. Through this data, one can observe that Indians carry out most of their card-based purchases through debit cards, leaving them with little to no credit score.

The reasons for this are multi-fold. Most companies charge high annual fees for issuing credit cards, forcing those on lower incomes to opt for more traditional payment methods. In addition to this, individuals must pay high interest rates on the money they have to borrow in order to spend on their credit cards, leaving many with high levels of debt and poor credit scores due to late payments. Finally, many young people like students, salaried individuals, and freelancers have low credit scores to begin with and therefore are never able to obtain a credit card from the major banks and financial firms.

These are the problems Bengaluru-based startup Slice wants to solve. Founder and CEO Rajan Bajaj intends to serve the young demography of India. Bajaj told TechCrunch in an interview that Slice offers a prepaid card that comes with a pre-approved credit line, making it easier for anyone to get a card. Users can now take ownership of their payments through the Slice app- tracking expenses, scheduling, and altering repayment dates. Another big draw for the youth of the country is that the startup offers a completely zero fee card with no hidden charges or annual fees. Finally, the fintech wing of Bajaj’s company has also launched ‘Slice rewards,’ which provides up to 2% rewards on every transaction and can be redeemed for cash.

The startup has gained more than 3 million users to date and has now lowered the credit limit on its cards to Rs. 2000 to tap 200 million new users. Bajaj reckons that users will be able to build up their credit scores through the Slice card, making them eligible for better credit cards from big banks and financial firms and better loans, which is perhaps the biggest draw of the Slice card. In this way, Slice is solving the credit card woes for many young Indians and is allowing them to equip themselves with better and more convenient financial tools.



“Credit Card Users in INDIA 2020: Analysis of Online User Conversations - ResearchAndMarkets.com.” Business Wire, 19 Nov. 2020, www.businesswire.com/news/home/20201119005603/en/Credit-Card-Users-in-India-2020-Analysis-of-Online-User-Conversations---ResearchAndMarkets.com.

Dashveenjit Kaur | 23 March, 2021. “Slice Is Redefining the Credit Card Industry in India.” Tech Wire Asia, 11 July 2021, techwireasia.com/2021/07/redefining-the-credit-card-industry-in-india/.

Panda, Subrata. “RuPay's Market Share TOPS 60% in Total Cards Issued, Says RBI Report.” Business Standard, Business-Standard, 27 Jan. 2021, www.business-standard.com/article/economy-policy/rupay-s-market-share-tops-60-in-total-cards-issued-says-rbi-report-121012800046_1.html.

Singh, Manish. “Slice Raises $6M to Help Young Indians Pay Digitally and Build Credit Score.” TechCrunch, TechCrunch, 25 June 2020, techcrunch.com/2020/06/24/slice-raises-6m-to-help-young-indians-pay-digitally-and-build-credit-score/.

Singh, Manish. “Indian Fintech SLICE Launches $27 Credit Limit Cards to Tap 200 Million Users.” TechCrunch, TechCrunch, 8 Sept. 2021, techcrunch.com/2021/09/07/indian-fintech-slice-launches-27-credit-limit-cards-to-tap-200-million-users/.

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