PayU to launch two new services: Consumer credit and digital banking

Digital payments companies are having a golden run since PM Narendra Modi announced demonetization of high currency notes giving a major push towards a digital economy. So after a host of new services and initiatives from Paytm, Mobikwik, Freecharge etc, payments processing firm, PayU, is planning to launch two new services — consumer credit and digital banking.

In a bid to become an all-round payments hub, the company is diversifying its business and in the process, has accelerated merchant acquisition. The new credit feature called LazyPay, initially available only for low-price purchases will enable users to buy things first and pay later.

“Purchase and payment don’t need to be together. If we’ve seen customers transact over a few months, we know the likelihood of getting paid back. The crucial part with LazyPay is the speed of transaction. It allows people to pay at their convenience, much like how telephone companies allow post-paid. The next step will be to increase the credit limit,” said Amrish Rau, CEO of PayU.

The digital payment business is expected to come over next year that will put the company in direct competition with the likes of Paytm, Freecharge and Mobikwik.

“The aim will be to move money faster for consumers. Once the consumer starts trusting us in this aspect, we can then offer various financial products and become a digital bank. We have to combine three or four things: P2P play, digital payments hub—all your daily payments can be made from the same app—and letting you move money faster. It’s not clear what exact shape this will take but we want to enable all banking and financial services-related transactions for customers through the platform,” Rau said.

In September, PayU, the digital payments provider owned by South Africa’s Naspers Group, bought rival Citrus Pay for $130 million in an all-cash deal. Rau, a co-founder of Citrus, became CEO of the merged entity.

Along with offering new services, PayU is also expanding its core business of providing payment gateway services. It has recently introduced a product named Selfie, allowing individuals and small businesses to sell products and accept payments across social media platforms.