Payed has secured angel funding from reputed investors & leaders from Education & Financial services industry, and a line of credit up to 100 crore from RBL bank.
Delhi based technology start-up Nujam Technologies announced the launch of Payed, the first of its kind digital financial platform, that empowers parents to pay school and college education fees monthly in a simple and seamless manner.
Payed works in partnerships with banks and financial institutions to facilitate payment of lumpy, prepaid and steep fees on behalf of parents to education institutes like pre-schools, schools, colleges and coaching centres, on time as per their fee schedule. Parents get the facility of paying their child’s education fees to Payed in economic monthly installments, in return for a nominal monthly subscription cost.
Payed is a viable solution for both parents and educational institutes. It frees the parents from the hassle of paying fees quarterly, semester wise or annually or availing interest ridden loans from the market. On the other hand, it helps education institutes get paid as per schedule, freeing them to focus more on academics, without any cost or risk. As RBL Bank’s co-brand credit card partner, Payed works on Mastercard network and also helps parents earn rewards up to INR 12500 per annum, everytime they use their Payed card to pay for fuel, movie tickets, grocery, travel and shopping.
Unlike any other offering in the market, Payed is a subscription styled solution that can be applied online, free of cost. The application process is digital, and does not involve any visit to a bank, submission of any collaterals and cash deposits. The subscription charges are transparently mentioned on Payed’s website, unlike any other financial service. The applicants are evaluated on few standard parameters and once selected, receive their Payed card& account within 7-15 days. Parents can then pay education fees online to institutes through the website and repay monthly.
Commenting on the launch, NV Subramanian, Founder and CEO, Payed said “Payed wants to make education fee payable monthly. Why should Education payments be paid upfront everytime – be it quarterly, half yearly or annually? Payed empowers parents to pay for quality education every month without having to worry about upfront payments. Our aim is to help parents release their cash flow for other important financial needs. We’ve received very encouraging, positive response from middle class parents and intend serving thousands of customers in due course. What’s more, dozens of quality Institutions have adopted Payed to offer monthly fee payment to their students’ parents, which indicates the value Payed provides to Parents and Institutes.”
NV further remarked “The education sector in India and abroad continues to witness one of the highest inflation rates 10 – 15% annually. Most private schools and colleges in India charge fees between INR 50,000 to 500,000 per year. Unfortunately, education fee payments have to be paid in advance, in cash – which affects parents’ cash flow & gets in the way of their savings. And financing solutions are expensive, cumbersome: Banks typically favor higher value loans and avoid segment of loans below INR 4-lakh (without collateral).Parents are left with little choice as they either pay Education fees from their savings or opt for loans at high rates of interest. Payed is an affordable, subscription based solution that requires absolutely no collaterals, deposits, payment gateway charges, processing or application fees”.
Payed’s aim is to solve the problem of lumpy fee payment for parents and on time fee collection by educational institutes. Additionally, Payed helps financial institutions launch innovative education financing products, and make them available to people at scale more efficiently and effectively.