India, March 15, 2018 (updated): India’s leading online payment service provider PayU and Kreditech, the leading group for digital consumer lending using machine-learning based underwriting technology, on 1. March 2018 launched the beta phase of PayU Monedo in India. PayU Monedo will provide cardless EMIs (equated monthly installments) to finance the online purchases of consumers in India. The new offering follows the launch of a strategic partnership between PayU and Kreditech announced in May 2017 to deliver a joint proposition for cardless EMI. The partnership saw EUR 110 million investment from PayU in Kreditech – the largest ever equity investment in a German fintech company.
With PayU Monedo, PayU and Kreditech aim to bridge the credit gap for the banked and underbanked population in India by facilitating instant short and medium-term shopping credits for their cart amount at the checkout of popular e-commerce websites. PayU Monedo combines PayU’s massive 300,000+ merchant distribution network with Kreditech’s expert machine learning-based real-time underwriting technology and its lending-as-a service platform Monedo. This integration allows customers to receive credit in less than two minutes for their online purchases at charges comparable to local banks. Loan amounts are granted at up to INR 1,00,000. The duration and interest rates for cardless EMI are dynamic and entirely dependent on the likeliness of the individual customer to repay the loan.
After the goods are added to the cart, the consumer is offered an option to select cardless EMI as the payment method at checkout. Using its innovative technology combined with state of the art fraud and eKYC verification process, PayU Monedo performs a precise credit rating and offers competitive pricing and repayment options. The application process typically requires no manual intervention and is issued in less than two minutes, thus eliminating cumbersome and lengthy procedures. Consumers can also choose from various flexible repayment options, selecting the mode most convenient to them.
By making goods and services affordable for consumers with lower purchasing power, PayU Monedo enables merchants to expand their business to completely new market segments with the chance of significantly higher sales and lower cart abandonment rates.
While Kreditech plans to become a licensed NBFC in the near future and has filed an application with the Reserve Bank of India. Under the current operational setup, Kreditech acts as a service and technology provider to a licensed NBFC, enabling it to offer a digital consumer credit experience.
“Our newest consumer offering of cardless EMI in partnership with Kreditech bridges the underlying gap for credit,” says Shailaz Nag, MD & Co-founder, PayU India. “PayU’s goal is to offer more shopping opportunities to those who, for various reasons have no access to credit. We help online shoppers to buy the latest mobile phones, laptops, consumer durables & much more on easy EMI without a credit card. PayU Monedo is easy to use, quick and offers flexibility. We are already talking to merchants in the e-commerce, travel and other online sectors and are looking forward to providing this innovative technology as an alternative payment method in the checkout process,” he further added.
“Both PayU and Kreditech share the same mission to increase the financial freedom of people with limited access to banking services”, states Alexander Graubner-Müller, CEO at Kreditech. “At Kreditech, we have developed a proprietary credit scoring technology which uses artificial intelligence and machine learning to assess an applicant’s creditworthiness in seconds and with higher precision than traditional credit-bureau based systems. By teaming up with PayU, we are going to provide the technology to make attractive loans to individual consumers with flexible terms of repayment. This is the first partnership between a payment provider and an alternative lending technology company and we are thrilled to have kicked-off our joint business in India. We are bullish about our foray in India.”
Kreditech’s market entry to India was directed under the leadership of Oliver Prill, COO at Kreditech. Kreditech India will be operated out of the Mumbai office led by Ashish Kohli as country-manager, bringing a total 20 years of experience in financial services with Citibank and Bajaj Finance.
About PayU India:
PayU is the leading online payment service provider in 16 high growth markets, dedicated to creating a fast, simple and efficient payment process for merchants and buyers. Our various payment methods and PCI certified platforms are designed to meet every consumer’s needs.
In India, PayU covers nearly 60% of the airline business and 90% of the entire e-commerce and processes over INR 90,000 crore of Digital payments in India annually. PayUBiz is the industry- leading payment service provider and its clientele includes the likes of Amazon, Ola, Bookmyshow, Insurance companies and many more. PayU India also has under its aegis PayUmoney, the fast, easy and secure payment solution which can be used by anyone who wants to collect payments in India (be it individuals, brick & mortar businesses, startups, freelancers, schools, hotels, utility companies, residential societies, telcos, insurance companies, traders, retailers etc.) PayU’s offerings are presently used by over 3,00,000 merchants all across India.
Driven by the zeal to create powerful financial services solutions, PayU acquired Citrus Pay, a Mumbai based Fintech Company in September 2016. After the merger, PayU has been focusing its energies on building its consumer vertical and launched its flagship product ‘LazyPay’, online deferral payment option in early 2017. LazyPay is currently live on merchants such as PVR, Croma, Box8, Zomato, Jazz Cinemas, Netmeds and Innerchef, D Vois, AbhiBus, Fasoos, FreshMenu and many more.
Kreditech Group’s mission is to improve financial freedom for the underbanked with the use of technology. Combining non-traditional data sources and machine learning, the company is aiming to provide access to better credit and a higher convenience for digital banking services. The product offering includes regular installment loans, point of sale loans and buy-now-pay-later solutions. Kreditech also offers a “Lending as a Service” model, allowing partners to integrate Kreditech’s credit products via an API into their own platform and services.
Founded in 2012 and headquartered in Hamburg, Germany, Kreditech covers 4 markets worldwide, Russia, Spain, Poland and India. Up until now, the company has originated more than two million loan and is serving 800.000 customers through its subsidiaries. Kreditech’s team of more than 400 people is led by CEO and Co-Founder Alexander Graubner-Müller and is financially backed by world-class investors including PayU / Naspers, J.C. Flowers, Peter Thiel, and the World Bank’s IFC.