PayU Credit helps a greater number of global citizens access credit services
Our innovative technologies mean that we can extend credit to customers not covered by traditional banks
PayU specialises in credit products and services for emerging markets across the globe. We are dedicated to removing risks to merchants, allowing consumers to use credit in ways that suit them and enabling a greater number of global citizens to access credit services. Emerging, high growth markets typically lack widespread access to credit. This stifles economic growth and opportunity. PayU focuses on delivering innovative fintech solutions. We connect consumers and businesses, improving access to credit in markets such as India and Africa.
Our credit philosophy
What does PayU see as the opportunity in credit?
- We see digital, mobile lending as the way of the future as consumers come to depend on their smartphones more and more.
- Emerging markets where there is a lack of formal access to credit, yet high mobile penetration offers an attractive opportunity for building and scaling consumer credit.
- For example, in India, there are 2 billion people who have no formal access to credit, and more than 300 million smartphone users who could take advantage of digital lending via their mobiles.
How does PayU approach credit?
- Our credit business is being built on three pillars: in-house developments, partnerships and acquisitions & investments.
- We believe in developing local experiences based on local needs and therefore helping users to access credit in a way that suits them.
- For example, we have LazyPay in India, Te Fía in Colombia and partnerships with banks in Poland, all using in-market teams to best serve users.
What makes PayU’s credit offering different?
- PayU processes approximately 1.6 million payments per day; this creates a rich pool of data alongside our partnerships with over 70 banks worldwide and 15 financial networks.
- This structured, usable data combined with our innovative technology, means that we can extend credit to customers not covered by traditional banks.
- As an example of the benefits, LazyPay in India has increased its overall customer base ~200% since July 2017 and daily transactions have increased 10x since April 2017 under PayU ownership.
How does PayU manage the risk of its credit offering to the business?
- Our unique wealth of data allows us to define risk and attract great partnerships.
- Partnerships are important in allowing us to pursue the significant opportunity sensibly, as PayU is a supply source for banks as we have the data that gives them confidence to take the loans on their books.
- PayU’s current loss rates are low due to its data-driven credit scoring, but PayU will not fund a large credit operation out of balance sheet and expansion will be gradual as the loan book develops.