Specifically, PayU announced the integration of the 'Credit Lines on UPI' feature on its platform in collaboration with the National Payments Corporation of India (NPCI). This integration allows PayU's merchants to accept digital payments via credit lines.
The company stated that with over 380 million UPI users now having easier access to credit lines, there is an anticipation for a significant surge in digital payments through credit. The provision of pre-sanctioned credit lines by banks through UPI is expected to benefit businesses and consumers, aligning with India's financial inclusion agenda.
Representatives from PayU cited by financialexpress.com emphasised the company's commitment to delivering innovative solutions to merchants and providing financial flexibility to consumers through its partnership with NPCI. PayU intends to collaborate with ecosystem enablers to democratise credit access in India and focus on crafting tailored products for stakeholders.
In addition to facilitating digital payments, PayU aims to help merchants, regardless of size, by sharing insights about the type of credit consumers have undertaken, such as pay-later options or personal loans. Merchants can use this information to devise growth strategies and offer customised products, enhancing the overall customer experience.
According to financialexpress.com, PayU currently offers more than 100 local digital payment methods, data insight solutions, and affordability solutions across both offline and online channels, benefiting over 500,000 merchants in India. In 2017, the company ventured into the consumer credit segment with the launch of LazyPay, an alternate lending platform providing credit solutions at the point of sale.
In 2023, PayU divested its Global Payments Organization (GPO) to Rapyd, a fintech-as-a-service provider, for a total cash consideration of USD 610 million. This strategic move aimed to enable PayU to concentrate on the significant payments and fintech opportunities in India.
In February 2024, India-based payment solutions provider PayU migrated its credit service, LazyPay, to Thought Machine’s core banking platform. This move marked the live integration of LazyPay onto the new platform, facilitating the development of innovative lending and credit products while improving user experience and security standards within the Indian credit financing landscape.
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