PayU's Credit Service LazyPay Migrates to Thought Machine's Vault Core

India’s leading payment solutions provider, PayU, has announced the successful migration of its credit service, LazyPay, to Thought Machine’s cloud-native core banking platform, Vault Core.

A New Standard for Credit Financing

This partnership has facilitated the development of novel lending and credit products for LazyPay and set a new benchmark for credit financing in India. The migration, completed within a year, has improved user experience by offering superior security and efficiency. The Vault Core platform has also enhanced PayU’s financial statement generation and multi-account management in real-time, creating a unified view of products.

Streamlining Operations with Vault Core

The integration of Vault Core’s real-time Ledger has further simplified PayU’s reporting and regulatory requirements. The credit revenue of PayU in India saw a 31% increase, reaching US$43 million, and the loan book size expanded by 66% to US$338 million by September 2023. During the first half of 2024, the company issued a total credit of US$362 million.

The use of Vault Core enables PayU to effortlessly devise personalized financial products in large volumes. Following the successful migration, PayU intends to transition more products and utilize Vault Core for the creation, testing, and deployment of innovative lending and credit products.

An Exciting Development for PayU

Raju Shetty, CTO of PayU Finance, expressed that the collaboration with Thought Machine underscores their dedication to providing top-tier financial services. He emphasized the scalability and flexibility of Vault Core aligns well with their growth objectives. The partnership positions them favorably to extend their reach in the Indian market and to meet future credit demands.

Nick Wilde, Managing Director, Asia Pacific, Thought Machine, expressed delight in partnering with PayU. He anticipates working together to deliver secure, efficient, and innovative credit and lending solutions in India.

Fintech’s Potential to Disrupt

A report from BCG highlights the potential of B2B fintech firms to disrupt the market and address the $5 trillion annual unmet credit needs of small to mid-sized enterprises (SMEs) globally. With traditional players struggling to keep pace with innovation, embedded finance providers like LazyPay, currently accounting for 25% of all fintech revenues, are expected to play a crucial role.

Thought Machine is addressing the enduring legacy technology problem in banking. Its clients include Global Tier 1 banks, such as Standard Chartered, Lloyds Banking Group, Al Rajhi Bank (Malaysia), and Intesa Sanpaolo, and challenger banks and fintechs, such as Nikel, C6 Bank, and Atom bank. Thought Machine operates as a registered entity in India, with regional headquarters in London, New York, and Singapore.