Tag: PayU

PayU’s LazyPay goes live with EMI option for merchants, BFSI News, ET BFSI

Banking & Finance

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LazyPay, a Buy Now Pay Later (BNPL) solution by PayU Finance, has gone live with ‘LazyPay EMI’ where merchants can offer instant cardless-EMI option to their consumers for ticket size upto 1 lakh, the company said in a release.

LazyPay has also integrated with PayU payment gateway to tap into 3.5 lakh merchants. It plans to directly onboard 1,000 merchants across segments such as EdTech, insurance, EVs, home furnishing and HealthTech by March 2022, it said.

“Covid has globally changed consumer preferences for credit, with millions of consumers opting for interest-free credit at checkout points on online platforms, and facilitator. In the next two years we expect our BNPL EMI product to be the largest contributor to the overall credit disbursals by LazyPay,” said Anup Agrawal, business head of LazyPay.

LazyPay EMI plans to meet the credit gap in India’s market, which has 150 million users transacting digitally but only 30 million consumers having credit cards.

EMIs range from three-12 months with zero to minimal interest. The process of lending credit is independent of a person’s credit score and is therefore more inclusive of new-to-credit consumers.



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PayU launches tokenisation solution ‘PayU Token Hub’, BFSI News, ET BFSI

Personal Finance

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PayU today launched its tokenisation solution ‘PayU Token Hub‘, which allows issuing banks to generate their own tokens. This solution is built by PayU and Wibmo, in partnership with Visa, MasterCard and leading banks.

“We welcome the new RBI guidelines. PayU Token Hub is fully interoperable, providing best of network and issuer tokens for card-on-file use cases extensible to device tap-and-pay.” said Manas Mishra, chief product officer.

‘PayU Token Hub’ will enable businesses to comply with RBI’s latest guidelines on online card data storage, and will soon expand to enable businesses to safely store and create tokens across other popular payment modes like UPI and Net Banking.

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PayU launches tokenisation solution – The Hindu BusinessLine

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PayU on Thursday launched its tokenisation solution ‘PayU Token Hub’, which will enable businesses to comply with RBI’s latest guidelines on online card data storage whilst allowing issuing banks to also generate their own tokens.

Built on PayU-owned Wibmo in part partnership with major card networks including Visa, MasterCard as well as with leading issuing banks, this solution offers both network tokens and issuer tokens under single hub.

Also read: Top banks in fray for Citi’s India credit card business

PayU Token Hub is as an interoperable plug-n-play solution, to enable card on file and device tokenisation using a single integration point. The solution is available to all merchants, including PayU’s 3.5 lakh merchants and 65 issuers supported by Wibmo.

Manas Mishra, Chief Product Officer, PayU India said, “We welcome the new RBI guidelines, as they empower the customer and ensure safer transactions. PayU has built the most innovative & robust solution to manage easy compliance with these guidelines for all players in the ecosystem. PayU Token Hub is fully interoperable, providing best of network and issuer tokens for card-on-file use cases extensible to device tap-and-pay. It will ensure that popular payments use cases including EMI, subscriptions, instant refunds and offers engines which rely on card numbers can continue seamlessly.”

RBI mandated that only banks and networks will be allowed to store customer card data w.e.f January 1, 2022, hampering customer payments experience at a e-commerce business levels. While the current guidelines are specific to card data storage, PayU Token Hub will soon expand to enable businesses to safely store and create tokens across other popular payment modes like UPI and net banking and contactless device payments.

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Bank, card firms receive 2 million auto-debit mandates after RBI order, BFSI News, ET BFSI

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Banks and card networks have received nearly two million auto-debit mandates after the Reserve Bank of India (RBI) made it mandatory from October 1 to take prior consent of a customer before debiting their accounts.

Most of the recurring payments are linked to credit cards, while such a facility is not available in most places for debit cards.

In August, total credit card transactions stood at 19 million, and debit card transactions at 358.5 million. In value terms, credit cards were at Rs 77,732.94 crore and debit cards at Rs 64,351.52 crore.

The readiness

State Bank of India, Axis Bank, HDFC Bank, Yes Bank, American Express, Bank of India, Bank of Baroda, ICICI Bank, HSBC, RBL Bank, IndusInd Bank and Kotak Mahindra Bank have implemented the recurring payment framework for their customers.

Canara Bank, Punjab National Bank and Standard Chartered Bank are making necessary system changes to allow e-mandates based transactions.

Service providers such as Razorpay, Billdesk, PayU have come up with solutions to help card issuers, customers, and merchants to register their mandates on their customised platforms. BillDesk has set up SI Hub, PayU has created Zion while Razorpay has set up MandateHQ.

RBI’s auto-debit rule

Under the new auto-debit rules that kicked in on October 1, there are no automatic recurring payments for services like recharge, utility bill as the additional factor of authentication (AFA) has now become mandatory.

To ensure safety and security of card transactions, the central bank had, in December last year, directed all banks that processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond March 31, 2021.

However, non-readiness of some of the players had forced the RBI to extend the deadline on recurring payment till September 30. The rule is applicable to all types of recurring payments like utility bills, phone recharge, DTH and OTT, among others.

As per the guidelines, banks will send a one-time password (OTP) to customers for payments above Rs 5,000.



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Jul-Sep clocks record 597 deals worth $30 billion, shows Grant Thornton data, BFSI News, ET BFSI

Personal Finance

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A total of 597 deals, amounting to $30 billion, were reported in Jul-Sep, reflecting the upbeat market sentiments, according to Grant Thornton Bharat Dealtracker.

The quarter also witnessed the highest number of IPO issues in over a decade, with 18 issues amounting to $5 billion. There has been an 86% increase in deals, compared with a year ago amid the subsiding COVID-19 and rise in daily inoculations.

The sustained economic growth is due to the rapid expansion in the services sector and accelerated manufacturing activities.

Mergers and acquisitions

M&A deals were valued at $12.8 billion for Jul-Sep, a 10% fall compared with a year ago. The dip in deal values was due to the absence of high-value deals.

The IT sector dominated the M&A deal values, followed by banking and financial services, of which two major deals accounted for over 52% of the total M&A values in Jul-Sep.

These were PayU‘s acquisition of Billdesk for $4.7 billion and Sumitomo Mitsui Financial Group‘s acquisition of Fullerton India Credit Company for an estimated $2 billion.

Private equity

PE deals witnessed a robust growth in Jul-Sep, with an all-time high deal activity in volumes and values at $17.1 billion, across 486 investment rounds. Startups claimed a major share in deal volumes at 64%, according to the report.

Both volumes and values saw twice the increase compared with Jul-Sep last year. Compared with the previous quarter, volumes were up by 44% and values saw a strong 24% growth.

Startups claimed a major share in deal volumes at 64%, while e-commerce led in deal values with 30% share, followed by IT, banking, telecom, and others.

IPOs and QIPs

Despite the impact of the COVID-19 pandemic, the country witnessed a record number of IPOs this year , with 42 issues amounting to $10.3 billion.

Jul-Sep recorded the highest number of issues in any given quarter, since 2011, with 18 issues amounting to $5 billion. The quarter saw only seven QIP fundraises, reflecting a trend reversal in 2021, compared with 2020 when QIPs dominated the market, the report said.



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PayU now exploring small-ticket products for underserved, says Anirban Mukherjee

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Having struck the largest fintech deal in the country with the acquisition of BillDesk, PayU India is now looking to explore small-ticket financial offerings and embedded finance for gig workers.

The company is currently piloting credit offerings for the SMB segment, Anirban Mukherjee, CEO, PayU India, said.

“Our goal is to become one of the leading payment companies by innovating digital credit and payments through partnerships and building together a full ecosystem of various financial services. On the digital credit front, we have already bought PaySense and merged it with LazyPay. We are at present experimenting with SMB credit and revolving credit. The demand is massive, and the segment is underserved,” Mukherjee told BusinessLine.

Strategic invetments

In its attempt to become a full services fintech player, PayU has been regularly making strategic investments in various fintech start-ups operating in different segments including DotPe, Fisdom and Indiagold. Mukherjee added that the company will continue to make similar investments, without disclosing specific capabilities he will be on the lookout for.

He believes that using LazyPay-based systems, consumers with little credit history will pave the way that PayU will take in the future. “We were the pioneers in ‘buy now, pay later’ segment. We are trying to do many things. Technological enhancements enable us to offer simple and lower ticket size products at various price points. We offer merchants overnight lending. We will also be exploring embedded finance for gig workers,” he said.

With embedded finance, unbanked population will get access to payment and lending products through the company’s platforms without needing to have or attach bank accounts.

BillDesk’s acquisition has boosted PayU’s journey in many ways. While PayU has been powering transactions for several internet economy companies, BillDesk has been a clear market leader in payment technologies space enabling over 50 per cent of the billing transactions in the country. The company also has been a key service provider to the BFSI sector and government organisations.

“This deal makes PayU one of the leading companies for digital payments. It gives us massive scale, and it will enable us to process 4 billion transactions together. It also creates scope for much more innovations and at that kind of scale, it will be very significant,” Mukherjee said.

The BillDesk team and founders will continue to be a part of the business even as PayU takes charge.

“India accounts for more than 50 per cent of our business and we are leaders in seven markets out of the 20 we operate in. BillDesk’s products have global applicability and with PayU partnership, we can take those innovations and platforms global,” he added.

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indiagold to raise $12 mn round from PayU, Alpha Wave Incubation fund

Banking & Finance

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indiagold, a gold-focused alternative credit platform, is planning to raise $12 million funding from PayU and Alpha Wave Incubation (AWI) fund. Other investors such as Better Tomorrow Ventures, 3one4 Capital, RainmatterCapital, and Leo Capital will also be participating in this round.

Launched in 2020 by Deepak Abbot and Nitin Misra, indiagold offers gold-backed loans, gold savings, and gold locker services to over a million consumers in India. Both the founders have worked as Senior Vice President of Paytm in the past.

The company aims to build a doorstep gold loan business backed by a robust technology stack, AI-based gold assessment capabilities, and superior customer-centricity – offering faster gold release and a transparent repayment policy. indiagold has made its Gold Locker service more secure, transparent, and convenient.

Nitin Misra and Deepak Abbot, co-founders of indiagold said, “India offers a large $650 billion addressable gold loan market which is highly fragmented and currently dominated by the informal segment. Even the formal segment hasn’t adopted digital practices at scale. indiagold’s suite of financial products bridges this critical need gap by digitally transforming lending against gold. With the support of our existing and new investors, we are moving aggressively towards our larger vision of establishing gold holdings as an alternate credit score, and creating a gold back credit platform for lenders to provide instant credit against gold.”

Vijay Agicha, Global Head of Strategy & Growth, PayU said, “Empowering disruptive fintech entrepreneurs through early-stage investments is a key element of PayU’s growth strategy. By supporting businesses that complement our existing portfolio, we aim to achieve our vision of developing a fintech ecosystem that will meet the financial services needs of millions of Indians. We believe that indiagold has the unique opportunity to expand the addressable market on the back of its product offerings and scale the business up significantly.”

Navroz D. Udwadia, Co-founder of Falcon Edge Capital said, “Gold, found in almost every household in India, is the key to provide affordable credit to every Indian. indiagold’s doorstep gold loan and gold locker products offers good customer experience and enables it to offer credit at more affordable rates.”

The gold financing business in India is predominantly offline, dominated by the informal segment, which accounts for approximately 70 per cent of gold loans in India. These loans address the liquidity needs of Indians without access to unsecured credit which is availed by less than 10 per cent of the total working population. The Covid-19 pandemic has accelerated the demand for short-term, low-cost, safe, and easily accessible formal credit options like digital gold loans.

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Now, Indian crypto exchanges hit by payment processors pullout, BFSI News, ET BFSI

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Just as they were breathing easy with the Reserve Bank of India clarifying that banks can do due diligence of crypto clients, Indian crypto exchanges have been hit by another hurdle.

With the RBI reiterating that it does not favour cryptocurrencies, major payment gateways have pulled out hitting transactions.

Customer complaints have inundated all India’s key exchanges as the pullout by major payment gateways, including Razorpay, PayU and BillDesk has hit transactions, according to social media and users.

The options

Options being resorted to including tying up with smaller payment gateways, building their own payment processors, holding back on immediate settlements or offering only peer-to-peer transactions.

At least two exchanges have tied up with smaller payment processing firm, Airpay, as its larger peers have cut ties.

Some crypto exchanges, such as WazirX, are forced to stick only to peer-to-peer transactions on certain days, while others, such as Vauld, allow bank transfers with manual settlement as they hunt for a payment processor, backing up settlements.

Smaller payment gateways have not proved very successful in executing high volumes of transactions, leading to failures that have resulted in a flood of user complaints.

Others, such as Bitbns, have built their own basic payment processor, allowing some essential transactions since the systems do not require prior approval from the Reserve Bank of India, the central bank.

A grey area

Despite the boom, cryptocurrencies are in a grey area in India, with the Reserve Bank hostile towards it and the government unsure about its prospects.

There is no legislation or regulatory code yet to govern the crypto ecosystem, leading to confusion among customers, businesses and financial institutions providing banking services.

In 2018, the Reserve Bank of India barred financial institutions from supporting crypto transactions, which the Supreme Court overturned in 2020. The government has circulated a draft bill outlawing all cryptocurrency activities, which has been under discussion since 2019.

Last month, the RBI asked banks not to cite its 2018 circular and clarified that banks can do their own KYC for crypto clients. With this, banks are now reassessing the situation, but several banks currently lack the technical expertise to make a supervisory assessment on these transactions.



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PayU, BFSI News, ET BFSI

Personal Finance

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PayU Insights report highlights the key sectors that have been illuminated in lockdown 1.0, pre lockdown 2.0 and lockdown 2.0. Online donations, charitable causes and logistics marches sky-high beat, others remained mere props in their performance. Entertainment and gaming could be quoted in this instance.

There has been a 52 percent increase in transaction volume and a 76 percent increase in expenditure year over year (May 2020 vs. May 2021). There was a 10% rise in the number of transactions after lockdown 2021 compared to pre-lockdown months, and a 21% decrease in average ticket size, demonstrating that customers are adopting online payments even for smaller transactions.

UPI continues to be the headliner, with number of transactions increased by 320% and expenditure increased by 306% in lockdown 2.0. Key insights of the report are as follows:

Online donations to charitable causes

Digital payments for charitable causes were able to get a good growth on the transactions by a massive 731% and expenditure by 2308% in lockdown 1.0. The lockdown 2.0 provides powerful forensic evidence in the record by distending the transactions and expenditure increased by 575% and 476% respectively. Within this category, various NGOs encapsulated activities to raise funds for covid relief.

Logistics hiked with partial and staggered lockdowns

Logistics sector nourished the undeviating growth in both transactions and expenditure with 217% and 227% respectively in lockdown 2.0 with a comparison of ventures as in lockdown 1.0. The utilisation of courier delivery service and purchase and transfer of essential items added proactive grounds to logistics. Further as per the bill passed in budget 2021, the scheme attempt to upsurge the digital payments.

Digital payment activities of Entertainment and gaming demoted

These sectors perceived degrowth. Transactions and expenditure took a major toll in the entertainment sector, hence down turning the activities in lockdown 2.0 by 35% and 41% respectively.

Likewise, the gaming sector too showed a turnaround in trends, declining by 63% compared to pre lockdown months.

The inflated sense of fall could be highlighted on the notion of consumers shifting from non-essential and muting of sentiments in this phase.

Travelling

The aftermath of lockdown 1.0 and 2.0 on travelling magnify the transactions and expenditures by 186% and 125% respectively. The relaxation in staggered lockdown navigated the travelling activities. But immediate lockdown downplayed the experience of transactions by 65% and by 78% in expenditure

UPI Growth

Lockdown 2.0 recorded phenomenal growth for UPI as a payment mode. The number of transactions through UPI increased by 320% and expenditure increased by 306% in lockdown 2.0, compared to lockdown 1.0. The next highest growth in modes of payment was observed in credit card transactions, as the number of transactions increased by 87% and expenditure increased by 69% year on year. For net banking and debit card modes, the number of transactions grew by 12% and 6% respectively year on year.

Pharmacy

The online digital payment transactions and expenditures harped by 78% and 31% respectively in lockdown 2021 compared to pre lockdown months. 9% decrease in transactions and 22% decrease in expenditures was witnessed with every succeeding month.

Retail and e-commerce

The analogy of lockdown 1.0 and 2.0 on account of transactions and expenditure in retail and e-commerce was seen as 171% growth in transactions and 108% in expenditure.

Education

Lockdown 2.0 anticipated expenditures to a growth rate of 37% whereas the transactions slipped by 31% as compared to lockdown 1.0.

Recharge and utility payments

The transactions and expenditures inched by 68% and 11% respectively in lockdown 2.0 compared to pre lockdown.

Groceries

Year on year, number of transactions grew by 171% with 108% growth in expenditure. There was a 52% increase in the number of transactions post lockdown 2.0 compared to pre lockdown months in 2021.

Hemang Dattani, Head–Data Intelligence, PayU said “Broadly, businesses and consumers were better prepared to deal with the exigencies of lockdown in 2021. Given that the lockdown was staggered and geographically restricted, the growth of digital payments has been steady, especially for sectors like retail, logistics & pharma.’’



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PayU sees a three-fold jump in transactions to $100 billion in three years

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PayU, online payments service provider and Prosus’ fintech arm, is expecting a three-fold-jump in GMV (gross merchandise value) to $100 billion over a three-year-period.

The GMV refers to the total value of transactions carried out through PayU platforms and products.

An increase in adoption in digitisation and payment solutions by small merchants along with rising popularity of e-commerce players and their ‘sale days’ are seen as major growth drivers in a pandemic-led new normal.

ACI Worldwide, in a recent report, indicated more than 70.3 billion real-time payments transactions were processed globally in 2020 — a surge of 41 per cent compared to the previous year.

This comes as the Covid-19 pandemic dramatically accelerated trends away from cash and cheques towards greater reliance on real-time and digital payments. The report said India retained top spot with 25.5 billion real-time payment transactions. By 2024, share of real-time payments volume in overall electronic transactions will exceed 50 per cent. This will touch 71.7 per cent by 2025.

PayU to offer Google Pay tokenised payment flow for merchants

Rise in transactions

According to Anirban Mukherjee, CEO, PayU India has doubled transactions growth rate over the last two years.

A PayU Insights report says the number of UPI transactions grew by 288 per cent and expenditure through UPI saw a 331 per cent uptick between 2019 and 2020. Payments in segments like indoor entertainment (subscription of OTT and so on), online training and upskilling courses, retail, e-commerce and financial services (insurance, etc) saw a jump; while travel and dining witnessed a dip.

Digitisation and automation of lending process would be the key going forward, says PayU Finance CEO

“Digital payments are witnessing an accelerated growth and the pandemic has pushed these trends upwards. Moreover, in the online sale days that took place across e-tailers like Flipkart eight out of top 11 merchants settled their transactions through PayU. There has been increased adoption across small merchants and 15X growth in transactions and settlement in this segment. So over a three year period, a three-fold-jump in GMV to $ 100 billion looks very much possible, even if there is a slight dip in momentum,” he told BusinessLine.

PayU earns primarily from service fees based on transaction volumes and values; subsricption charges by merchants and so on.

Omnichannel presence

Mukherjee adds that PayU is also increasing its omni-channel presence as it looks to provide contactless payment solutions to customers both in-store and online, through methods like QR, PoS, and others.

PayU is also expanding scope of its alternative digital credit solutions like LazyPay; and offerings under buy now-pay later or personal loan options are being increased.

The presence of Wibmo, a digital payment security firm and mobile payment technology platform, that PayU acquired in 2019 is being ramped up.

“We are currently profitable in the core payment business; while investments are on in the other verticals like LazyPay or Wibmo,” he added.

The company is also eyeing acquisitions, strategic partnerships and investments into a broader ecosystem spanning payments, credit and other digital financial services

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