PayU partners with NPCI, rolls out Credit Line on UPI for merchants

Fintech firm PayU has collaborated with the National Payments Corporation of India (NPCI) for its merchants to accept digital payments via credit line.

The ‘Credit Lines on UPI’ feature integrates the functionality on the PayU application.

As per the NPCI, “Pre-sanctioned Credit Line at Banks through UPI” is a financial offering for the lending landscape for consumers as well as businesses to access pre-sanctioned credit lines from banks. 

In 2017, PayU entered the consumer credit segment with LazyPay, an alternate lending platform which offers credit solutions at Point-of-Sale. 

“With over 380 million UPI users gaining easier access to Credit Line, the next big wave in digital payments is expected from credit. The enablement of pre-sanctioned Credit Lines by banks through UPI will empower businesses and consumers alike, fostering India’s financial inclusion agenda,” PayU said in a statement.

PayU also said it will be sharing information about relevant identifiers related to the type of credit the consumer has undertaken, such as pay-later, personal loans, etc. with merchants for them to form growth strategies and come up with relevant offerings.

Swaroop Kulkarni, Vice President for Products at PayU said, “Our partnership with NPCI to accept pre-sanctioned Credit Line on UPI underscores our commitment to delivering innovative solutions to our merchants and financial flexibility to our consumers.” 

We will continue to work cohesively with ecosystem enablers to further democratise credit access in India and focus on building customised products for stakeholders, Kulkarni added.

PayU has partnered with about 60 per cent of e-commerce merchants, and offers over 100 local digital payment methods, data insights and affordability solutions across offline and online channels for over 5 lakh merchants in India.

PayU is the payments and fintech business of Prosus, a global consumer internet group and one of the largest technology investors in the world. It competes with the likes of Pine Labs, Stripe and Razorpay.