Protean eGov Technologies, a provider of Digital Public Infrastructure (DPI), Regulatory Tech (RegTech) and open networks, has partnered with PayNearby, to make credit services more accessible and affordable nationwide. Leveraging the ONDC network, this marketplace will be launched soon for last-mile borrowers and MSMEs. 

Once launched, the marketplace will also allow for easy discovery of various lending products at affordable pricing to its borrowers.   

In this partnership, Protean will serve as an ONDC technology service provider that facilitates credit availability for last-mile borrowers nationwide through PayNearby’s Distribution as a Service (DaaS) network. 

By making this service available through over 12 lakh active PayNearby outlets, the partnership aims to broad-base credit access for India and Bharat and lay the foundation of a more inclusive society. Smart data modelling and frameworks like Account Aggregator (AA) will ensure credit extension to thin-file/new-to-credit underserved citizens, driving breakthroughs in how India and Bharat lend. 

Protean will also aggregate multiple Loan Service Providers (LSPs) onto a single platform, giving citizens and businesses the convenience of choice and affordability. 

India has a glaring inadequacy in capital access across all segments of the society. According to a TransUnion CIBIL research, the credit-served population in the country in 2021 stood at less than 22 per cent of the adult population. Despite significant advances in financial inclusion through the JAM (Jan Dhan, Aadhaar, and Mobile) trinity, formal credit access to rural and low-income households remains challenging. 

The dependence of rural poor on money lenders continues and is more pronounced in the case of marginal farmers, landless labourers, MSMEs and economically backward classes. 

The Protean-PayNearby partnership will solve many use cases that inhibit last-mile penetration. Formal institutions find it expensive to reach rural underserved due to their geographical remoteness and lack of access to customer data. 

Rural citizens are, therefore, left with very few choices, often informal and at a very high cost. With PayNearby's robust DaaS network, LSPs gain seamless access to local markets through digitally enabled retailers, streamlining servicing costs. The Account Aggregator (AA) framework enhances credit scoring to assess new-to-credit (NTC) and thin-file segments accurately, enabling tailored credit to a broader audience. 

For borrowers, credit shopping through a comprehensive marketplace will allow them to choose the interest rate and repayment terms as per their needs. The choice aspect will rationalise pricing and make credit more affordable at the last mile. 

For the tech-shy and documentation-averse last-mile customer, trusted PayNearby local retailers will streamline the process, ensuring faster and hassle-free loan applications and disbursals. 

Suresh Sethi, managing director and CEO of Protean eGov Technologies, said, “We firmly believe that consent-based data sharing through Account Aggregator will digitally empower the individuals with their own data. Towards that, we have partnered with PayNearby to leverage the Account Aggregator and ONDC network to accelerate financial inclusion further and enable credit access for individuals and businesses at the last mile. This partnership will enable seamless discovery of borrowers and lenders and help create a more inclusive financial system in India.”

Commenting on the alliance, Anand Kumar Bajaj, founder, MD and CEO of PayNearby, said, “This partnership enables LSPs to offer formal credit to MSMEs and customers, with competitive pricing and tailored products. Multiple data sources enhance underwriting decisions, ensuring timely credit. PayNearby retailers provide human intelligence for seamless loan disbursals.”

For borrowers, credit shopping through a comprehensive marketplace will allow them to choose the interest rate and repayment terms as per their needs. The choice aspect will rationalise pricing and make credit more affordable at the last mile. 

Local retailers will streamline the process for the tech-shy and documentation-averse last-mile customer, ensuring faster and hassle-free loan applications and disbursals. In the past, PayNearby and Protean joined forces to provide paperless PAN Card services at nearby stores nationwide.