Neo Zap is a payment tag that can be used to make payments with a simple tap on card machines, removing the need for internet connectivity
Equipped with NFC (Near Field Communication) technology, the payment tag comes in the form of a wearable sticker that can be easily attached to the back of a phone
With features such as fraud insurance payment and numberless card designs, the new offering aims to cater to premium GenZ and millennial customers
The payment and fintech arm of Peak XV Partners-backed asset management company Neo Group, NeoFinity, has launched a new digital payments tag called ‘Neo Zap’ at just INR 49.
Equipped with NFC (Near Field Communication) technology, the payment tag comes in the form of a wearable sticker that can be easily attached to the back of a phone. The tag can be used to make payments with a simple tap on card machines, removing the requirement for physical cards or internet connectivity.
While Neo Zap can be ordered from the company’s website, it is yet to officially announce the launch of the payment tag.
Neo Zap works without internet or battery and can be used to make payments for both online and offline transactions. The company claims that the payment tag has a transaction speed of 480 milliseconds, which makes it the “quickest payment method available in the market”.
Speaking with Inc42, NeoFinity cofounder and CEO Rayan Malhotra said, “The idea behind launching Neo Zap stemmed from identifying gaps in existing payment methods like UPI and cards. Despite UPI’s efficiency, its process — unlocking the phone, scanning QR codes, and entering a PIN — proved slow. Neo Zap was conceived to address these shortcomings, offering a faster payment experience”.
While Malhotra said that the tag is priced at INR 1,000, early adopters can buy it for INR 500. However, it is currently available at INR 49 on the company’s website.
The company claims that the tag works on all RuPay-compliant card machines. Malhotra also said that the tag facilitates online transactions through a virtual card available on its app which is recognised by ecommerce players like Amazon and Flipkart. It can also be used to avail various public transportation services across the country.
“With Neo’s app, users can travel nationwide on metro, rail, and buses without the need for a separate smart card. Neo Zap’s national compatibility makes it usable across all metros and buses, including those in Delhi, Chennai, and more, with tap services supported. It is National Common Mobility Card (NCMC) enabled, embodying the concept of one nation, one tag”, added Malhotra.
NeoFinity is largely looking to cater to Gen Z and millennial (18-35 age group) users in urban and Tier-II cities.
The platform is also looking to woo customers by offering, what it calls, India’s first prepaid card with fraud insurance payment. It has partnered with HDFC Ergo to offer digital fraud insurance, providing users with added peace of mind and financial protection.
On the security front, NeoFinity claims that transactions below INR 2,000 require no PIN entry on Neo Zap. However, it has an eight-step built-in security feature for transactions above this threshold.
Other features include numberless card designs, prepaid wallet model (which limits exposure to potential fraud), and other privacy measures that ensure sensitive information remains secure.
In addition, the fintech company has also partnered with brands such as Times Prime, PVR, INOX, Swiggy, and Zomato to enable users to unlock rewards and discounts with every transaction.
Looking ahead, the company aims to onboard 100,000 customers in the first year. It also plans to expand its offerings to include credit card options and innovative features like customisable tags, Malhotra added.
Neofinity is the fintech venture of the Neo Group, which has four key verticals – wealth advisory, asset management, multi-family offices and a wealth management platform for independent advisors.
Neo Group was founded in May 2022 by Nitin Jain, former wealth management CEO at PAG-Edelweiss Financial Services. The Peak XV-backed company oversees over $3 Bn in assets under advisement, including $360 Mn in assets under management (AUM)
It is pertinent to note that fintech startup LivQuik, in partnership with National payments Corporation of India (NPCI), launched an ‘OTG Ring’ last year. The wearable ring is similar to Neo Zap and allows users to make contactless payments.
