PayU, India’s leading payment solutions provider, today announces it has successfully migrated its credit service, LazyPay, to Thought Machine’s cloud-native core banking platform, Vault Core, and is now live. This partnership has enabled LazyPay to build innovative lending and credit products, deliver a superior, secure, and efficient user experience, and set a new standard for credit financing in India.

LazyPay migrated its existing customers to Vault Core within just one year. In addition, Vault Core has streamlined PayU’s real-time financial statement generation and simplified multi-account management, providing a unified view of products. Furthermore, Vault Core’s real-time Ledger has improved PayU’s reporting and regulatory requirements.

The Indian market offers significant opportunities for PayU's credit products as alternative lending services expand. PayU’s India credit revenue grew by 31%, totalling US$43 million, and loan book size grew by 66% to US$338 million by the end of September 2023. A total of US$362 million in credit was issued during the first half of 2024 (1H24).

With Vault Core, PayU can effortlessly create differentiated and personalised financial products at scale. Following the successful initial migration project, PayU plans to continue migrating more products and using Vault Core to build, test and deploy innovative lending and credit products.  

Speaking on this exciting development, Deepak Mendiratta, CEO, PayU Finance, stated: "Our collaboration with Thought Machine signifies our commitment to offering the best-in-class financial services to our customers. Vault Core's scalability and flexibility align perfectly with our growth ambitions, and we are excited to offer a wide array of services to our customers. We are committed to expanding our footprint in the Indian market, and this partnership will position us well for the future of credit."

Nick Wilde, Managing Director, Asia Pacific, Thought Machine, comments: “We are delighted to partner with PayU to bring our cloud-native technology to the Indian market. With a successful migration now complete, we look forward to working together to deliver efficient, secure and innovative credit and lending solutions in India.”

A BCG report highlights the potential for B2B fintechs 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, B2B2X services, particularly embedded finance providers such as LazyPay, which currently account for 25% of all fintech revenues, are poised to play a crucial role in meeting the growing demand for fintech solutions.

Thought Machine is solving the long-standing legacy technology problem in banking. Global Tier 1 banks, including 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, are clients of Thought Machine. In addition to its regional headquarters in London, New York, and Singapore, Thought Machine operates as a registered entity in India.