PayU India gets RBI's nod to open non-banking financial company

Naspers group flagship company PayU India has got a licence from the Reserve Bank of India (RBI) to open its own non-banking financial company (NBFC).

The move will give a big push to the fintech firm credit-focused offerings, PayU Credit. The subsidiary of PayU will be headed by PayU India MD Jitendra Gupta, whose firm Citrus Pay was earlier acquired by PayU for about Rs 860 crore in 2016.

At present, PayU India claims to process payments around Rs 8000 crore monthly. About 2 per cent of PayU India revenue comes from its credit business.

According to MD of PayU India, credit is next big thing in India. With $5 million investment, the firm has been disbursing over 20000 loans a day.

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India consumer credit market as a trillion-dollar market. We feel that our platform approach will address this by bringing in different lenders, our balance sheet, partnering and investing in other companies, so that we can address the different segments of credit needs, Jitendra Gupta quoted as saying by ET report.

The fintech major is also planning to make the investment in insurance and wealth management

In January this year, it shut down its PayUmoney Wallet services. The company then said it will be launching a new product soon.

PayU is one of the leading payment service providers and its clientele includes the likes of Jet Airways, Amazon, Airtel, Snapdeal, Jabong, Ola, Bookmyshow, various insurance companies, among several others.