India’s leading online payment service provider PayU, a Naspers’ fintech company, has announced RBI’s approval to operate NBFC to cater to the diverse financial needs of various segments of the society.
Speaking on the acquisition, Jitendra Gupta, MD, PayU India said, “We have already served more than 500,000 consumers during 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 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 Rs. 100 crore mark for credit issuance on the existing platforms and is targeting to clock next Rs. 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% in the next 3-4 years. 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.