16 Nov 2023
It plans to expand its profile once it receives the RBI payment aggregator license.
Payments gateway veteran PayU plans to enter Business-to-Business or merchant payments for Indian customers. Once that is set, it will venture into the small ticket supply chain financing space. PayU also acquired a 4.6% stake in the supply chain financing startup Vayana Network.
The B2B merchants tie up with multiple payment aggregators, so retention is lower in this segment. PayU intends to use QR codes for offline payments instead of POS terminal transactions. The Reserve Bank of India (RBI) rejected PayU’s application for the payment aggregator license in January this year. The company had to stop onboarding new merchants after this development. It implemented changes in its holding structure, reapplied for the permit, and now awaits RBI’s final nod.
PayU used to generate up to 99% of its revenue from payments till FY2019. Now, it generates up to 47% of its revenue from non-payment related operations and 30% from credit.