Payment solutions provider PayU has tied up with the NPCI to offer ‘Credit Lines on UPI’ feature on its platform.
This will allow PayU merchants to accept UPI payments from customers through pre-sanctioned credit line.
"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," the company said in a statement.
The company said it will share digital payment insights with merchants on relevant identifiers related to the type of credit the consumer has undertaken, such as pay-later, personal loans, and so on, to help them create customised products.
"We will continue to work cohesively with ecosystem enablers to further democratise credit access in India and focus on building customised products for our stakeholders,” said Swaroop Kulkarni, vice-president of products at PayU.
PayU has also refiled its application for the payment aggregator licence with the Reserve Bank of India, which has barred it from onboarding new merchants till the approval.
The company claims to offer its payments solutions to over 5 lakh offline and online merchants in India.
In 2017, it entered the consumer credit segment with the development of LazyPay, an alternate lending platform which offers credit solutions at point-of-sale.
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