Global online payment service provider PayU has invested €110 million in Kreditech, a technology group for digital consumer credit that employs machine learning-based underwriting. The two companies will also partner to deliver a joint POS finance proposition.
Kreditech will provide its Lending as a Service technology to PayU’s 300,000-merchant network while PayU acquires a significant minority stake in Kreditech.
The announcement follows a successful trial which saw more than €10 million of credit provided to Polish consumers through a real-time, online process.
The Kreditech deal is part of a larger strategy, PayU CEO Laurent le Moal explained.
“With our substantial investment we deepen our relationship with the industry-leading management team at Kreditech, and help to bring pioneering machine learning and AI technology to the many high growth markets around the world that need better access to financial services. At PayU we believe in the enormous potential of technology to unlock credit and financial services for underserved populations. In the past 12 months, we have become the leading corporate venture capital investor in fintech, investing more than €245 million around the world. This latest investment in Kreditech fits perfectly with this vision.”