Financial tech firm plans to make transactions easier for those without bank accounts and access to credit.
According to the latest reports, Haryana-based firm PayU is looking to set up a Digibank service within the next 12 to 18 months. It also expects to earned revenue of $100 million (about Rs 654 crore) by March next year. The firm is owned by the South Africa-based company Naspers, which also owns OLX, and has made considerable investments in companies like MakeMyTrip, Tencent, and Flipkart.
In a PTI report, B Amrish Rau, PayU CEO, said “Our long-term plan is to set up Digibank which will look at easing account opening for youth and provide banking services to those who are unbanked and have no access to credit.” He added that the digibank wouldn’t need any brick and mortar structure. The company’s confidence seems to be warranted as PayU saw transactions worth Rs 6,000 crore in January, and that number is expected to double in the next 12 months. The government’s Digital India campaign and demotisation drive are expected to help in this regard.
At the moment, PayU has a pre-paid payment instrument license, and helps over three lakh merchants to online payments. “We count one entity or company as one merchant and the base is growing every month,” said Rau in the PTI report. “When we start Digibank, we will tie up with others that will host our customers. It will be hassle free banking along with our own financial products. PayU is open for acquiring firms that operate in the credit business segment.”
Recently, PayU started started providing credit to individual customers, with the payout in the range of Rs 1,000 to Rs 2,500. It’s an instant payout without any documentation and is done based on the customer’s credit profile.