PayU eyes $ 70 million revenue from its platform for making online transactions in 3 years

NEW DELHI: Payment gateway company PayU is eyeing USD 70 million in revenues with over 20 million buyers in the country using its platform for making online transactions in the next three years.

The Naspers MIH-owned company offers gateway for payment through credit cards, debit cards and netbanking.

"We currently have about 4 million people using our platform. This we expect will grow to 20 million in the next three years as we reach one million sellers," PayU India Internet Country Head Nitin Gupta told reporters here.

Other companies in which Naspers has invested in include Flipkart, ibibo, Jabong and Tradus.in in India.

PayU, which has a presence in 16 countries, started its operations in India in October 2011 and has over 1,500 merchants using its platform to enable customers make online payments.

"We are looking at achieving break even in two years and USD 50-70 million in revenue in the next three years," he said.

PayU's competitors include BillDesk, BillJunction and CCAvenue.

"There are 240 million bank accounts, but only 11 million people use online payment (mechanism). Of this, only four million are active users. The main problem is people still do not trust the online medium," Gupta said.

This is what PayU wants to address and offer a secure and easy payment platform to consumers, so that they can make online transactions comfortably, he added.

Gupta said growth in usage would also be driven by more people using mobile phones to make transactions. "Currently 3.6 per cent of online transactions volume come from mobile phones. This is expected grow to 15 per cent in two years," he said.