PayU partners with Amazon Pay Later to offer instant digital credit to shoppers

Naspers-backed fintech firm PayU has partnered with Amazon Pay Later to provide instant digital credit access to Indian shoppers.

As part of this partnership, Amazon Pay Later will be integrated into PayU’s checkout infrastructure, allowing online merchants to offer an instant credit line to their customers, thereby boosting business revenues.

“We believe this innovative solution is poised to significantly impact the way instant credit is accessed and utilised by consumers in India, while also helping merchants achieve better business outcomes,” said Nikhil Mehta, senior vice president of payments strategy and partnerships at PayU.


This collaboration follows the recent in-principle approval PayU received from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA), enabling the company to start onboarding new merchants onto its platform.

In addition to the integration, PayU will introduce the Amazon Pay Later service on its offers engine platform. This plug-and-play platform by PayU allows merchants to create customised offers during checkout across various payment modes.

PayU reported an 11% increase in its India revenue, reaching $444 million in fiscal year 2024, up from $399 million the previous year. Payment services contributed 46% to its core revenue from this segment, accounting for 60% of total payment volumes (TPV).

“We are excited to provide Amazon Pay Later through PayU and it allows us to further facilitate credit access, enhance flexibility, and simplify financial transactions for millions of customers,” said Vikas Bansal, Director, Amazon Finance.

Notably, Amazon is considering spinning off its payments arm, Amazon Pay, into a standalone app to compete with the likes of PhonePe and Google Pay.