PayU offers small businesses instant access to credit with repayment cycles of 1 week to 1 year

Credit and finance for MSMEs: The amount of credit ranges from Rs 25,000 to several crores with repayment cycles of 1 week to 1 year. Credit will be offered based on the merchant’s transaction history.

Credit and financing for MSMEs: Online payment company PayU on Tuesday launched several solutions to ease the credit and cash flow issues facing small businesses. Marketplace’s three new products Early Settlement, Priority Settlement and Merchant Lending will provide working capital, better cash flow management and increased liquidity for its 3.5 lakh SME merchants. The loan amount ranges from Rs 25,000 to several crores with repayment cycles of 1 week to 1 year. Credit will be offered based on the merchant’s transaction history.

“SMEs are engines of growth for the country, accounting for a third of India’s GDP. However, access to credit continues to be a major infrastructural obstacle for them. Leveraging our payments expertise and in-depth understanding of Indian SMEs, we offer various credit products for merchants of different sizes, categories and lifecycles, supporting digital financial inclusion. This segment will be an important area of ​​focus for us in 2022,” said Hemang Dattani, Head of Growth Business at PayU in a company statement.

The company said its Priority Settlement feature allows merchants to choose between receiving funds in scheduled settlement cycles every 15 minutes, every hour, or in three daily batches. Moreover, it allows merchants to access funds in less than 30 minutes from the time a transaction is made. “It helps businesses such as travel and taxi aggregators, financial services, and inventory-focused merchants deliver funds and payments to vendors and customers on the same day, without delay,” the company said.

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PayU provides payment gateway solutions to online businesses and claims to be the preferred payment partner for nearly 60% of e-commerce merchants, including all major e-commerce companies and the majority of airlines. Its alternative lending platform LazyPay was launched in 2017 and offers credit solutions such as Buy Now Pay Later, app-based personal loans and point-of-sale (PoS) credit. The service is online on more than 100 merchants, including Byju’s, Swiggy, Flipkart, Makemytrip, Dunzo, Vodafone, Zomato, Bookmyshow, Oyo, etc.

PayU India’s total payment volume (POS) grew 70% to $18.9 billion and revenue grew 55% to $133 million in the first half (April-September) of the year. 22, its parent company Prosus said in a statement in November 2021. PayU had announced the acquisition of BillDesk in India for $4.7 billion in August last year.

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