REX: PayU Expects Increase in Credit Volumes by 2023
FACTS
- , Indian provider of digital financial services, owned by Naspers global technology group, acts as their financial unit.
- They claim they disbursed over 20 million loans since their credit business launched.
- In India, only 10% of personal consumption expenditure consists in digital transactions, especially considering low local credit card penetration levels (with barely 35 to 40 million cards, for less than 10% of the Indian population).
KEY FIGURES
- 18 markets addressed in Asia, Europe, South America, the Middle East and Africa
- 1.2M payments processed each daily
- Naspers is present in more than 120 countries and markets
CHALLENGES
- PayU reports 25% growth each month, and plans to disburse $1 billion worth of loans over the next 3 years. They intend to improve access to formal means of credit on a market poorly addressed by conventional financial institutions.
- Also, PayU would be using customers’ credit-related data to craft lending offers better suited to their needs and individual situation. Their credit services might then contribute to boosting the Indian economy.
MARKET PERSPECTIVE
- PayU used to focus on the payment industry, but shifted strategy to include credit services as well: in 2017 they launched LazyPay, a pay-later solution, since enhanced through the addition of personal loans and instalments.
- Furthermore, Paytm recently partnered with the Indian institution Citi on crafting a credit card offer. And the mobile carrier Ola teamed up with the State Bank of India to launch their Ola Money credit cards (they intend to issue more than 10 million cards by end-2022). These moves are highlighting the expansion of the Indian credit market as the local e-commerce sector keeps gaining momentum.
- Several other players already started to work on similar services in India, including Amazon Pay and ICICI Bank.