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Leading online payment service provider PayU has received RBI’s approval (subject to certain pending RBI compliance) to operate as NBFC. This will help the Naspers-backed PayU promote inclusive growth in the country by catering to the diverse financial needs of various segments of the society, the company said in a statement.
Jitendra Gupta, MD, PayU India said, “Credit is the next growth driver for the fintech industry in the country. We realised the potential in consumer credit space. 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 more than a year now. 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% in the next 3-4 yrs. Through its newly acquired NBFC license, PayU is planning to bolster its effort in laying the foundation for its long-term credit business.
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