Digital loan player PayU Finance, backed by Prosus Ventures, doubled its buy-now-after-payment (BNPL) segment in one year and hit a 3 million user base. The company, which has seen its loan portfolio up to 70 percent in advance, now plans to provide a full range of financial services to its customers.
Prestant Rangatantan, CEO of Peu Finance, believes the company could create a $ 1.5 billion loan book over the next five years – a merger between LazyPay and PaySense, one of the largest digital lenders. The country.
“One of the major changes over the past year has been the ability to provide credit to consumers. We will now look at systematically bringing more digital services to them. LazyPay has 3 million users, and now, we want to offer other financial services such as savings, insurance and asset management to this segment. So that’s how we see ourselves, from BNFL to full-fledged financial services, ”said Ranganatan.
A.D. BNPL’s offering, which began in 2017, allowed users to use payment methods for small ticket purchases in the range of 300-500 rubles. This success has prompted the company to offer this method for large ticket transactions.
We have two sections or avatars in BNPL or LazyPay. The first is a delayed payment product that meets small ticket transactions, and it’s all about convenient payment. It’s not about giving credit. Something similar to UPI or wallet. We’ve seen this happen, ”Rangananta added.
LazyPay currently has over 300 merchants, including players such as Swiggy, Zomato, Samsung, Dunzo and GoAir.
A.D. In August 2020, the company also launched the second version of LazyPay for large ticket purchases such as TVs, laptops and refrigerators, etc. Consumers say consumers have two payment options – either use their credit card and switch to EMS (Equal Monthly Payments) or borrow money from a lender.
“BNPL is not a loan or a credit card that many people feel is an unnecessary problem because of interest payments. And banks have not made it easy for consumers to understand what they are getting into if they use credit cards to get loans. Also, the new generation does not want to go into long-term credit as a tool. ”
To further enhance this segment, PayU will bring some of the largest merchants to the ecosystem in just a few weeks. “By the end of this year, we will be borrowing 80-100 million rubles a month,” said Rangatantan.
So far, the company has lent $ 300 million and is looking to add new products. Kovid suddenly took part in the NBFC last year, so many prefer to go slow on credit. PayU also adopted the same strategy. With a parent like Process, the company had no problems accessing funds, but chose to go slowly to see how the market works. Going forward, the company will focus on three key strategies.
“First, because we have more technology, data science and capital than most, we have created a lending operating system that can financially support partner lending activities. We have a lot of neo-banks, and financial applications are coming in and all of them are giving us credit, ”he said.
Second, PayU wants to be the biggest player in the payroll category. They see us double and double down in check finance. It is a big strategic priority for us. And finally, we want to bring our supply to consumers without debt. ”