Naspers has said that its payments business PayU recorded over 400 million transactions during the financial year ending 31st March 2017, processing a total payments volume (TPV) of over $16 billion, up 36% year on year. Six of the 17 markets where PayU is operational reported “operational growth of over 50%”, Naspers said in its annual report.

PayU claims over 300,000 merchants globally. The company hasn’t released India specific data in the report.

Average daily transactions for the company grew to 1.6 million from 0.9 million, up 72% overall, due to the addition of Citrus Pay to the business in September 2016. Without Citrus Pay, average daily transactions for the company would have grown by 49%: we calculated, and that’s around 1.341 million per day, without Citrus Pay. Thus, it seems that the Citrus Pay acquisition added around 0.259 million transactions per day to the business, though the numbers from Citrus being taken into account are only from November 2016 to March 2017.

PayU had bought 100% stake in Citrus Pay last year for a total of $112 million, with an additional $18 million as “employment-linked prepayment”. The purchase price allocation, according to Naspers: “net debt $1 million; net working capital $2 million; intangible assets $ 15 million; deferred tax liability $5 million and the balance of $105 million to goodwill. The main classes of intangible assets recognised in the business combination were trademarks, customer bases and technology.”

With Citrus, PayU recorded a revenue of $186 million for the year, up 33% for the year, from $140 million. Citrus Pay doesn’t appear to have had a significant impact on the company’s revenues, since without Citrus Pay, the growth would have been 32%. Again, note that the numbers from Citrus being taken into account are from November 2016 to March 2017.

Naspers says that the acquisition of Citrus Pay in India “consolidated PayU’s position and will allow it to build a franchise in e-commerce while growing vertical market positions in the airline and telecommunications industries.” It says that the investment increased customer base to over 30 million customers, and over 300,000 merchants.

Next up: Credit

After year-end – in May – PayU invested €110m in Kreditech – a leading technology group for digital consumer credit, picking up a minority stake in the business. Kreditech will use the funds expand in its Lending as a Service (LaaS) offering and offer its AI and machine-learning credit underwriting and loan management technology to PayU’s network of merchants. It has already opened an office in India, and PayU already has a deferred payments product in India called LazyPay, which it is investing $50 million into over the next few tears. LazyPay will be able to underwrite transactions, and charge consumers on a fortnightly basis. Users are selected based on a trust score, based their online transaction purchases, an approach which is referred to as flow based lending, and typically relies heavily on collecting user data, and basing scores on payment and behavioral patterns. Note the LazyPay product’s algorithms consider around 80-odd variables for underwriting debts. Meanwhile, Kreditech is looking at a big data play and considers around 20,000 data points to create a financial profile to assess the risk of providing finance to a person.

Kreditech is currently hiring in India, for heads of Sales and Marketing, Collection, Service Center Operations, and Operations Lead. India’s becoming a fairly attracting market for lending companies, with companies like LoanTap, MoneyTap, EasySalary, among others, all raising money. Bharti Airtel, which has a payments bank license, also acquired a stake in Seynse earlier this year.

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