PayU India has received a license from the Reserve Bank of India to operate its own non-banking financial company, a development that will provide a big boost to the fintech firm in growing its consumer credit business.
PayU India managing director Jitendra Gupta will head the new initiative. The NBFC, PayU Credit, which will be a subsidiary of PayU, is the latest offering from the company that looks to expand its suite of credit-focused offerings.
“With payments, we have access to data, and we generate data… For us, when we look at the market, the new aspirational class coming in, they need access to financing. We give financing to the consumer, which, in turn, reinforces business with merchants… This is not a market where one company can dominate,” le Moal said.
PayU India processes monthly payments of about Rs 8,000 crore and derives only about 2% of its overall revenue from its credit businesses currently. According to the reports, the company contributes about 47% of its parent’s total payment value globally. The company has an estimated 4,00,000 merchants on its platform.