PayU has partnered with Amazon Pay Later to integrate instant digital credit options into its checkout platform for Indian shoppers.
The collaboration aims to help merchants offer flexible credit options to customers, potentially improving business outcomes.
This partnership comes as PayU India reported 11% YoY revenue growth in FY24, with the company recently receiving in-principle authorisation from RBI to operate as a payment aggregator.
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Prosus-backed digital payments giant PayU has partnered with Amazon Pay Later to expand digital credit accessibility for Indian shoppers.
As part of this move, Amazon Pay Later will be integrated into PayU’s advanced checkout infrastructure, enabling online merchants to offer instant, flexible and convenient credit options to their customers.
Nikhil Mehta, senior VP of payments strategy and partnerships at PayU, said, “We believe this solution will impact the way instant credit is accessed by consumers in India, while also helping merchants achieve better business outcomes.”
As part of this collaboration, PayU will also roll out Amazon Pay Later service on its offers engine platform, which allows merchants to create customised offers on checkout across various payment modes for their customers.
This partnership comes at a time when PayU is experiencing significant growth in the Indian market.
PayU India’s revenue grew 11% year-on-year (YoY) to $444 Mn in the financial year 2023-24 (FY24), the investment group said in its annual report.
However, this was lower than the 31% revenue growth in FY23 and over 40% jump in FY22 as the company was unable to onboard new merchants due to its pending payment aggregator application with the Reserve Bank of India (RBI).
PayU received an in-principle authorisation from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA) in April 2024.
On a consolidated basis, PayU’s revenue grew 22% to $1.1 Bn in FY24. It also managed to cull its trading loss to $67 Mn, a 23% improvement from FY23’s $83 Mn. The company attributed this improvement to the “closure of the loss-making digital bank offering in India and cost optimisation”.
In the fiscal, PayU shut its LazyCard, a prepaid payment instrument backed by a credit line. In November 2023, Prosus said that the decision resulted in reduction of losses and an enhancement of overall profitability within the group’s fintech and payments portfolio.
It is pertinent to note that PayU India is said to be eyeing a public listing in 2024.
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