PayU India is set to launch a consumer lending business after securing a Non-Banking Finance Company (NBFC) licence from the RBI, reports the Economic Times. The new vertical dubbed PayU Credit will be headed by the company’s India managing director Jitendra Gupta.

According to the ET report, the Naspers-backed company is keen on expanding its credit business given that it currently generates only around 2% of its overall revenues from credit. This is sharply in contrast with the company’s payments operations in India, as PayU India accounts for a staggering 47% of PayU’s global total payment value. PayU India claims to process monthly payments of about Rs 8,000 crore.

This development also comes days after Nasper’s CEO Bob van Dijk  said that it would continue to invest in India, including in the fintech sector. PayU is also reportedly set to enter the insurance and wealth management businesses.

PayU’s bets on digital lending

PayU has been aggressively investing in various digital lending businesses in the country over the last few months.

  • Last month, it tied up with Reliance Money to offer instant app–based personal loans under the LazyPay brand, through Citrus’s mobile application.
  • In July, it invested $11.5 million in PaySense after a funding round last month.
  • Prior to that, PayU also infused $3.7 million in ZestMoney, a consumer check out financing startup.
  • Last year, PayU also invested €110 million in German fintech company Kreditech which provides consumer credit.
  • It announced that it would invest $50 million in LazyPay over the next few years. The company acquired the service when it bought Citrus Pay for $130 million in 2016.

Competition in the lending space

In the Digital lending ecosystem, PayU will compete with players like CoinTribe, PaySense, NeoGrowth, Paytm-backed CreditMate, CASHe, LendingKart, MoneyTap, EarlySalary, Faircent, Loantap, LoanMeet amongst others. Last month, digital payments company MobiKwik also announced the launch of a new service that will offer instant loans of Rs 5000 on its application.