India’s Pine Labs, an established name in the payments infrastructure space, has introduced Credit+, a new platform that is set to redefine credit issuance for banks, fintechs, and large merchants. Pine Labs announced the development in a blog post on Wednesday, and CEO Amrish Rau disclosed the same in a post on X.
Credit+ represents Pine Labs’ maiden foray into the Indian credit sector – Rau anticipates a sustained growth in credit cards and noted a significant increase from approximately 80 million total cards issued in January 2023 to nearly 95 million in October 2023. The evolving dynamics of the market extend beyond traditional credit cards, with Rau envisioning innovation in various forms of digital credit. This includes paper financing, EMI options, overdraft accounts, and personal loans.
“Credit is a critical engine for the bold growth targets that India and many emerging markets have set. Vast segments of consumers and businesses whose credit needs are underserved today will enter the formal credit economy. In recent years we have seen more than 30M new to credit consumer each year,” Rau wrote in the blog post, adding that RuPay and credit on UPI will provide an invaluable boost to the credit ecosystem.
In the blog post, Rau describes Credit+ as “the platform of choice for banks, brands, and fintechs in delivering their credit offerings.” In other words, it is a comprehensive credit issuance stack designed to empower fintechs and banks in navigating the intricacies of credit programs. Beyond conventional offerings, the platform provides an extensive suite of capabilities, including credit program management, co-branded credit card launches, streamlined rewards and loyalty management, and the facilitation of embedded credit offerings for online merchants.
Integral to the success of Credit+ are Pine Labs’ strategic partnerships with major card networks, such as Mastercard and Visa. This collaborative approach extends to potential future partnerships with card network providers like Amex and RuPay. The inclusion of RuPay is particularly significant, marking Pine Labs’ commitment to staying at the forefront of digital payment innovations and supporting credit on the Unified Payments Interface (UPI).
The introduction of Credit+ aligns seamlessly with Pine Labs’ overarching strategy to diversify revenue streams. CEO Amrish Rau emphasizes the importance of ensuring that less than 50% of the company’s revenue is derived from offline point-of-sale (PoS) operations. This strategic shift comes as Pine Labs has made significant acquisitions, totaling five to six across 2021 and 2022, demonstrating the company’s proactive stance in the competitive financial technology landscape.
Beyond the launch of Credit+, Pine Labs is strategically positioning itself for global expansion. The company, having established a robust presence in five Southeast Asian countries and recently entering the UAE market, plans to introduce its gift card issuing service, payments installment stack, and QR code payment services to the US and European markets.
