PayU Monedo will provide cardless EMIs (equated monthly instalments) to finance the online purchases of consumers in India.
The new offering follows the launch of a strategic partnership between PayU and Kreditech announced in May 2017 to deliver a joint proposition for cardless EMI.
The partnership saw EUR 110 million investment from PayU in Kreditech – the largest ever equity investment in a German fintech company.
With PayU Monedo, PayU and Kreditech aim to bridge the credit gap for the banked and underbanked population in India by offering instant short and medium-term shopping credits for their cart amount at the checkout of ecommerce websites.
PayU Monedo combines PayU’s 300,000+ merchant distribution network with Kreditech’s machine learning-based real-time underwriting capabilities and its lending-as-a service platform Monedo. This integration allows customers to receive credit in less than two minutes for their online purchases at charges comparable to local banks.
Loan amounts are granted at up to 2,000 USD. The duration of the credit line and interest rates for cardless EMI are dynamic and entirely dependent on the likeliness of the individual customer and the merchants to repay the loan.
After the goods are added to the cart, the consumer is offered an option to select cardless EMI as the payment method at checkout. Using its scoring technology combined with fraud and eKYC verification process, Kreditech performs a precise credit rating and offers competitive pricing and repayment options.
The credit decision requires no manual intervention and is issued in less than two minutes, thus eliminating lengthy procedures. Consumers can also choose from various flexible repayment options, selecting the mode most convenient to them.
By making goods and services affordable for consumers with lower purchasing power, PayU Monedo enables merchants to expand their business to new market segments with the chance of higher sales and lower cart abandonment rates.
For more information about PayU, please check out a detailed profile of this company in our dedicated, industry-specific online company database.
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