PayMate, a business-to-business digital payment solutions provider, is looking to leverage itself as a credit platform for small and medium enterprises (SME) and help improve the flow of credit.
The company is working with non-banking financial companies and banks to leverage the former’s platform and provide working capital requirements to these enterprises.
Mumbai-based PayMate runs a proprietary B2B cloud-based payments platform and helps large enterprises and SMEs transition to digital payments, and manages vendor and customer payments and invoicing.
It was recently chosen by Visa to provide a B2B payment platform for joint customers. Market sources peg the B2B payment processing market, or the commercial consumption expenditure market, in India, at $3.8 trillion.
According to Ajay Adiseshann, CEO and founder, the firm has been able to collate data on credit requirements and credit-worthiness of many small enterprises, which it had been trying to get on to its platform. The recent acquisition of peer-to-peer online lending platform, Z2P Technologies, for an undisclosed amount, is another step towards this direction.
“We are in talks with NBFCs and banks to provide credit to SMEs. Credit will be extended through our platform rather than us being the lender. PayMate will earn via transaction fees,” he told BusinessLine .
PayMate typically earns via the transaction fees that it charges on its platform. It intends to handle nearly 4.5 billion transactions on its platform by the end of this fiscal. “Over the last two years, transactions have been growing at around 100 per cent on year-on-year basis,” said Adiseshann.
The company does not share turnover details but claims that revenues have doubled in the first six months of this fiscal (till September) compared to the same period last year.