PayU's new product suite provides small businesses easier access to credit

By siliconindia  |  Thursday, 20 January 2022, 08:50:08 AM IST

PayU's new product suite provides small businesses easier access to credit
Payment service provider PayU has initiated a product suite to provide simplified access to credit for its 3.5 lakh merchants, the company said on Wednesday.
PayU has launched three products -- marketplace early settlement, priority settlement and merchant lending, it said in a press statement. It said these products assist provide access to working capital, enhance cash flow management and increase liquidity to boost the growth of small and medium businesses (SMB).
The new suite gives customised offerings, with credit amounts ranging from Rs 25,000 for SMBs to several crores, and repayment cycles ranging from a week to a year.
Hemang Dattani, head of growth businesses at PayU, said SMBs were growth drivers for the country, accounting for a third of India's GDP. However, access to credit continues to be a major hurdle for them.
The World Bank estimates that Indian SMBs face a $380 billion credit gap, which makes it difficult for them to reach short-term expenses and manage everyday operations.
We offer diverse credit products for merchants of differing sizes, categories and business life cycles, supporting digital financial inclusion. This segment will be an important focus area for us in 2022,” Dattani said.
PayU's priority settlement feature allows merchants to choose between receiving funds in scheduled settlement cycles every 15 minutes, hourly or in three daily batches. It permits merchants to access funds in less than 30 minutes from the time a transaction is made.
It assists businesses such as travel and cab aggregators, financial services, and inventory-led merchants to provide funds and payments to vendors and customers on the same day, without delay, the company said..
As per a report that PayU had launched a credit and prepaid payment instrument called LazyCard, for which its ‘buy now pay later’ (BNPL) solution LazyPay partnered with SBM Bank India. The company is looking to up the ante against card-based BNPL providers such as Uni and Slice.

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