PayU India plans to double value of processed transactions to $1 billion per month

BENGALURU: Financial technology arm of Naspers, PayU India, said its payment gateway business plans to double the total value of transactions processed, to $1 billion per month in the next one year, backed by boost in volumes from offline and online partnerships.

"Striking partnerships is critical to our growth," said Nitin Gupta, CEO, PayU India, adding that the company also expects to launch products related to investments and lending in a bid to have a foothold in all key fin-tech domains by October.

Gupta said the company’s relationship with IndusInd Bank will help PayU create co-branded digital consumer banking products and attract new customers across demographics.

Merchants are at the core of PayU’s growth strategy, and to differentiate itself from competition, the company offers several value added services, including analytics to merchants who are really looking for premium payment services, said Rahul Kothari, business head, PayUBiz.


"The comprehensive merchant dashboards and APIs by PayU enable merchants to perform deep analytics on their customers, especially their buying behaviour. Some of these dashboards include failure rate analytics, chargeback dashboards, offer and promotion engines," Kothari said.

PayU payment gateway charges about 0.75 per cent transaction fees on debit cards, which can go up to 2.95 per cent for credit cards.

The Delhi-based company, growing 80 per cent every year, competes with Citrus Pay, EBS, CCAvenue and banks in its payment gateway business.

PayU currently has three key businesses in India, PayUbiz — its payment gateway solution used by large enterprises such as BookMyShow, Ola, Cleartrip, Redbus, Zomato — PayUmoney, the wallet solution for consumers and SMBs, and the newly launched Point-of-Sale systems, launched in April and claims it already owns 25 per cent of the market share.

A recent study by Google and Boston Consulting Group said Indian digital payments industry is expected to grow to $500 billion by 2020, contributing to 15 per cent of GDP.

"Spurred by smartphone penetration and supported by progressive regulatory policy, the digital payments industry is at an inflection point," said Rajan Anandan, VP, SEA & India, Google.