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    Pay1 - Proposal For Merchant Lending

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    Adhe Idhi
    Pay1 is a technology company in India that empowers small retailers and entrepreneurs through additional revenue streams, products, credit, and technology. With a network of over 300,000 merchants across 350+ cities, Pay1 combines retail, finance, travel, and consumer technology. This diverse ecosystem provides growth opportunities previously unavailable to Indian retailers. Pay1 partners with NBFCs to provide credit to merchants, utilizing its data and transaction platform for lead generation, underwriting, disbursal from merchant wallets, and repayment collection with low 1% default rates. Currently 10-12% of merchants are pre-approved for average loans of 50,000 rupees, but Pay1 aims to increase this to 50% pre-

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    Pay1 - Proposal For Merchant Lending

    Uploaded by

    Adhe Idhi
    180 views6 pages
    Pay1 is a technology company in India that empowers small retailers and entrepreneurs through additional revenue streams, products, credit, and technology. With a network of over 300,000 merchants across 350+ cities, Pay1 combines retail, finance, travel, and consumer technology. This diverse ecosystem provides growth opportunities previously unavailable to Indian retailers. Pay1 partners with NBFCs to provide credit to merchants, utilizing its data and transaction platform for lead generation, underwriting, disbursal from merchant wallets, and repayment collection with low 1% default rates. Currently 10-12% of merchants are pre-approved for average loans of 50,000 rupees, but Pay1 aims to increase this to 50% pre-

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    Pay1 - Proposal for Merchant Lending

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    Pay1 is a technology company in India that empowers small retailers and entrepreneurs through additional revenue streams, products, credit, and technology. With a network of over 300,000 merchants across 350+ cities, Pay1 combines retail, finance, travel, and consumer technology. This diverse ecosystem provides growth opportunities previously unavailable to Indian retailers. Pay1 partners with NBFCs to provide credit to merchants, utilizing its data and transaction platform for lead generation, underwriting, disbursal from merchant wallets, and repayment collection with low 1% default rates. Currently 10-12% of merchants are pre-approved for average loans of 50,000 rupees, but Pay1 aims to increase this to 50% pre-

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    180 views6 pages

    Pay1 - Proposal For Merchant Lending

    Uploaded by

    Adhe Idhi
    Pay1 is a technology company in India that empowers small retailers and entrepreneurs through additional revenue streams, products, credit, and technology. With a network of over 300,000 merchants across 350+ cities, Pay1 combines retail, finance, travel, and consumer technology. This diverse ecosystem provides growth opportunities previously unavailable to Indian retailers. Pay1 partners with NBFCs to provide credit to merchants, utilizing its data and transaction platform for lead generation, underwriting, disbursal from merchant wallets, and repayment collection with low 1% default rates. Currently 10-12% of merchants are pre-approved for average loans of 50,000 rupees, but Pay1 aims to increase this to 50% pre-

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    A PLATFORM TO EMPOWER MICRO-MERCHANTS

    "Pay1 is a technology company that empowers neighborhood retail


    businesses & micro-entrepreneurs by adding revenues streams and providing
    them access to new products, credit and technology. With a network of
    300k+ merchants spread across 350+ cities in India, Pay1 is at the forefront
    of combining retail, finance, travel and consumer technology to create an
    integrated business ecosystem unique to the Indian markets.
    The diverse selections of services provide our merchant network with
    immense growth opportunities that have been previously unexplored in the
    Indian retail scenario."
    OUR VALUE PROPOSITION

    • In the credit space, we look at the NBFC business as a combination of 4


    things:
    • Lead Generation and KYC Collection
    • Data providing for underwriting with merchant's consent - transactional
    and alternate data
    • Disbursal into Pay1 balance - this helps in keeping track of daily
    transactions and the loan usage.
    • Repayment & Collections from Pay1 balance - PAY1 acts as a collection
    agent for the NBFC and deducts daily EMIs from the retailers’ wallets and
    transfers it to them on their preference. (Daily, weekly, monthly) Pay1 has a
    support team that takes care of recollection until T+10 default days, and
    then the NBFC is informed about the same. Beyond this, we can invoke our
    field sales and distributors and neighborhood stores to help.
    We strongly believe that the last two are critical when we talk about profitability
    and sustainability of the lending business and hence, we focus not only on on-
    boarding and data providing for underwriting but also on continuously reducing
    in-genuine defaults. And thus, this module has helped us to maintain less than
    1% of default rates in the lending portfolio.
    Currently, the pre-approval rate looks like 10-12% of the merchant base, out of
    which only 1-2% avail the loan services and the average ticket size of the loan is
    Rs. 50,000.
    We look forward to increase the pre-approval rate to 50% and average loan ticket
    size to Rs. 2,00,000
    OUR EXPECTATIONS

    What we expect from our partners is a solid process at their end to


    ensure our merchant experience remains top notch and that disbursals
    happen real-time. We also expect insights from them to continuously
    improve and strengthen the segment from our end.
    Thank you!
    www.pay1.in

    Hitarthi Majithiya hitarthi.majithiya@pay1.in 8160682418


    Alakh Gargiya alakh.gargiya@pay1.in 8769195939

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