New Delhi: Online payment service provider PayU, a Naspers’ fintech company, has announced RBI’s approval (subject to certain pending RBI compliance) to operate NBFC. This will help PayU promote inclusive growth in the country by catering to the diverse financial needs of various segments of the society.
Speaking on the occasion, Jitendra Gupta, MD, PayU India said, “Credit is the next growth driver for the fintech industry in the country. We realized the potential in consumer credit space and have already introduced innovative credit products in order to tap the market. We have already served more than 500,000 consumers during the last 12 months. Our own NBFC license is a very important milestone in our Credit journey. It will help us launch new product variants faster and address a new segment of consumers for providing Credit on Tap though we continue to work with our partners such as Reliance Money”.
PayU has been offering micro-credit through LazyPay Buy Now Pay Later to its consumers for the last 18 months. Owing to the growing credit demand, LazyPay evolved its offerings to become a one-stop credit platform and recently launched app based Personal loans EMI and point of sale credit through merchant EMI in partnership with another NBFC.
PayU Credit allows users to access credit in a way that suits them. The company has already crossed INR 100 Cr (USD 16 million) mark for credit issuance on the existing platforms and is targeting to clock next INR 100 crores volume in next 3 months itself.
Credit segment remains to be a big investment area for PayU in coming years. The company estimates consumer business revenues will be 40-50 per cent in the next 3-4 yrs. PayU is working towards both scalability and a better experience for consumers so that credit services are delivered with more agility and faster. Through its newly acquired NBFC license, PayU is planning to bolster its effort in laying the foundation for its long-term credit business.