New Delhi: PayU India has received Reserve Bank of India’s (RBI) approval to operate its own non-banking financial company (NBFC), the digital payments firm owned by South Africa’s Naspers Ltd said today. The move will help PayU promote inclusive growth in the country by catering to the diverse financial needs of various segments of the society, fintech startup claims.
The approval from the central bank is subject to “certain pending RBI compliance", PayU said in a statement. “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 last 12 months," said PayU India managing director Jitendra Gupta.
“Our own NBFC licence 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," Gupta added.
In October last year, Shailaz Nag, chief operating officer and co-founder at PayU India, had told Mint that the focus for 2018 will be credit and consumer offerings, adding that the company has spent about $265 million over the past five years in India.
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 licence, PayU is planning to bolster its effort in laying the foundation for its long-term credit business," PayU said in the statement.
According to PayU, its deferred payment facility called LazyPay witnesses around 10,000-11,000 transactions per day. More than 800,000 transactions have already taken place using this facility. Launched in April last year, LazyPay has already tied up with more than 100 merchants across food, travel, entertainment and bill payments.
PayU has already crossed the ₹ 100 crore (USD 16 million) mark for credit issuance on the existing platforms and is targeting to clock next ₹ 100 crore volume in next 3 months itself, it said.