Beginning the year 2020 with a bang, PayU is planning to merge operations of our consumer lending business LazyPay with PaySense, India’s fastest growing digital credit platform. The combination will bring together two highly complementary companies, to better serve our customers.

This merger takes us one step closer to achieving PayU’s long term vision of orchestrating a fintech ecosystem in India, by partnering with the right companies and offering multiple financial services. 

PayU will inject a total of upto $200M in the newly-merged enterprise PaySense; $65M of the total amount will be immediately invested, while the balance will be infused in the next 24 months.

Benefits for Customers

While India’s banked population has more than doubled since 2011 to over 80%, credit bureau coverage is still limited. By pooling the strengths of PayU, LazyPay and Paysense, the combined entity will be able to reach out to more new-to-credit Indians, who have a strong appetite for credit.

PayU has a deep understanding of consumer backgrounds, insights into their purchase behavior and affluence levels thanks to our payment gateway business. LazyPay has expertise in driving customer acquisition and engagement and PaySense’s forte is strong analytics, tech & risk management capabilities. Together, we will build one unique platform successfully serving the needs of people who require credit to power their aspirations. 

Leaders Speak

Siddhartha Jajodia, Global Head of Credit, PayU said, “Technology has the power to completely transform people’s access to financial services and the credit market in India is ripe for further digital disruption. This merger is the next step in our journey as we accelerate our vision for credit in India. We’re delighted to welcome Prashanth and his experienced team as we integrate this fast-growing business and build a full-stack digital lending platform aligned with PayU’s overall plan of orchestrating a broader fintech ecosystem in the region.”

Prashanth Ranganathan, Founder and CEO, PaySense added, “Providing more Indian consumers with access to credit is crucial to helping individuals grow and succeed. PayU is a natural partner for us as we both strive to make finance more simple, accessible and transparent. We’re excited to start bringing our personal loan product to more consumers throughout India and truly democratise credit.”

PayU’s unified digital credit platform will enable third parties such as banks, NBFCs and alternate lenders to co-lend and grow assets. It will also enable borrowers to access credit whenever and wherever they need it, in a digital and seamless way. 

As a part of the deal, Prashanth Ranganathan, currently PaySense CEO will lead PayU’s credit business in India as the CEO of the new enterprise. 

Read the full media coverage on The Economic Times, The Times of India, ET BFSI, ET-Brand Equity, Live Mint, Fortune, The Hindu Business Line, Business Standard, The Financial Express, CNBC TV 18, Inc42, Your Story, Entrepreneur, and Moneycontrol.

The Road Ahead

At PayU, our investments are driven by our focus on developing new capabilities that better serve our customers, giving them access to products that best suit their local needs. There is great synergy between the businesses and by leveraging it, PayU and PaySense will be able to use their strengths to reach out to the underserved customers, bringing us one step closer to a world without financial borders, in which everyone can prosper.

We are hopeful of many such acquisitions and developments in the future. To know more about our innovations and products,

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Recently, we took the next step in this journey – well, a leap actually! We are glad to share with you that we have acquired California-based payment and security company Wibmo for $70 Million. And this strategic acquisition has taken our fintech investment total past the $500 million mark, putting us within the top five leading global fintech investors over the last two years.

We believe that constant technological advancements in the digital payments industry will help save a lot of time and effort for the users be it merchants or end customers.

Found in 1999, Wibmo helps over 20 nations with payment security and authentication, risk management and mobile payment solutions. They, like us, are committed to making digital payments frictionless through innovative products and services, supporting the Government’s vision of a Digital and Cashless India.

This is a very important moment for all of us at PayU as by combining Wibmo’s expertise in payment security and mobile payments with our strong merchant network and heritage in payments, the combined entity will be focused on delivering more secure and seamless payments experience to our customers.

Aakash Moondhra, CFO, PayU Global said, “We will partner with leading banks to enable digital banking, merchants will gain with higher conversions rates and increased sales, and consumers will have a frictionless experience in completing digital payments transactions.”

How this Acquisition Will Help Our Merchants

Helping merchants with seamless and secure transactions is our priority! A step that we take would only be successful, if it helps you (the merchants) in your digital payments. We are in the process of creating a robust online payment ecosystem that will cater to all your needs in a secure manner and help you grow your business! For merchants, this acquisition will result in:

• Higher Success Rates, More Conversions – PayU-Wibmo integration will reduce hops in a transaction from 16 to 6. Therefore, reduce the latency & increase success rates.
• Safer Transactions – As mentioned above, Wibmo is a major provider of authentication and payment security solutions. From innovative One StepTM frictionless, device-fingerprinting to authentication through downloadable apps, to behavior modeling for fraud detection, their innovative solutions help authenticate genuine transactions while keeping fraudulent ones away.
• Great Consumer Experience – With reduced hops in transaction, higher success rates and improved authentication – your consumers will have a seamless payment experience.

Conclusion

These acquisitions and investments are a testimony to the trust all of you have shown in choosing PayU as your digital payment solution. The addition of Wibmo will definitely boost our core payment gateway service. Together, we will build even more meaning relations – with merchants, customers, and financial partners. We are sure that this acquisition would prove great for Wibmo, PayU, our merchants, customers and the fintech sector!

Have a look at how our story regarding Wibmo acquisition got covered in popular media channels, newspapers and online:

Click on these links below to know more about PayU-Wibmo acquisition:

TechCrunch, CNBC India, The Economic Times, Mint, The Hindu Business Line, Business Standard The Financial Express. Finextra,VentureBeat The Paypers.

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