Credit and finance for MSMEs: Digital payment service provider PayU on Thursday announced a new programme in collaboration with Visa and Yes Bank for businesses’ digital payments and to support the digitisation of SMBs in particular. The programme Business Payment Solution Provider (BPSP) offers flexible commercial offerings, which reduce costs for merchants and helps improve cash flow by utilizing credit lines provided by their commercial card issuer bank, according to the company.
Also, it allows businesses to pay their vendors digitally, by supporting them to accept commercial card payments and automates supplier and buyer reconciliation. “BPSP supports the digitization of small and medium businesses in particular, enabling them to accept digital payments easily and facilitates easy credit access,” PayU said in a statement.
Also read: NPCI partners with payment aggregators for merchant transactions through credit cards on UPI
“BPSP will digitize the entire value chain for businesses, especially small SMBs, who often lack resources to digitize payments or access credit without considerable expenditure and effort. We are committed to introducing and supporting payment solutions that enable ease of digital payments in the country and help us bring more and more merchants online,” said Mohit Gopal, Chief Operating Officer, PayU Payments.
According to PayU, it has supported over 5 lakh businesses, including enterprises, e-commerce companies and SMEs. The company enables businesses to collect digital payments across over 150 online payment methods such as cards, net banking, EMIs, buy now pay later, QR, UPI, wallets, etc.
“The new solution enables non-card-accepting suppliers to accept card payments, giving them a host of advantages and access to formal credit, while the payer merchant gets the myriad benefits of using Visa commercial cards,” said Ramakrishnan Gopalan, Head – Products, India and South Asia, Visa.
“We believe this can bring a host of small businesses into digital payments and aid the growth of the business landscape.”
Also read: Outlook: How 2023 will shape landscape of digital payments for retailers, small merchants
Importantly, retail payments operator National Payments Corporation of India (NPCI) in March this year had partnered with various payment aggregators including PayU apart from BharatPe, Cashfree Payments, Google Pay, Razorpay, Paytm, and Pine Labs to enable merchant transactions through RuPay credit cards on UPI. Earlier, UPI customers were able to make transactions only through their bank accounts, overdraft accounts, and prepaid accounts.
In March, PayU had collaborated with fintech company KreditBee to allow its more than 5 lakh merchants accept payments for online purchases from KreditBee’s 10 million customers in EMIs.
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