PayNearby & Protean make credit accessible on the ONDC Network

By Gloria Mathias

PayNearby, India’s branchless banking and digital network, is leveraging the Open Network for Digital Commerce (ONDC) to make credit services more accessible and affordable for last-mile borrowers.

This new credit marketplace is built in partnership with Protean eGov Technologies Limited. In this integration, Protean will serve as an ONDC technology service provider, facilitating the availability of credit for last-mile borrowers across the country through PayNearby’s extensive Distribution as a Service (DaaS) network.

The integration aims to broaden credit access across Bharat for individuals and small business owners in remote areas. Protean will aggregate multiple Loan Service Providers (LSPs) onto a single platform, providing citizens and businesses with convenient and affordable options. This will significantly enhance the ability of formal institutions to extend credit to rural and underserved populations.

Anand Kumar Bajaj, Founder, MD, and CEO of PayNearby, said, “This integration with Protean through the ONDC Network will revolutionise how credit is accessed and delivered in Bharat. By offering formal credit options and tailored products, we are committed to providing our retail partners and customers with viable financing solutions. Our goal is to streamline the lending process, ensuring quick and easy credit access for all.”

Suresh Sethi, Managing Director and CEO of Protean eGov Technologies Limited, said, “Bharat still has a large population outside the formal credit ecosystem, and we firmly believe that consent-based data sharing through Account Aggregator will digitally empower these individuals to access credit using their transactional history. By bringing together Account Aggregator, the data DPI, and the ONDC powered open network, coupled with PayNearby’s last mile reach through physical touchpoints, we intend to enable universal access to credit for underserved borrowers.”

Thampy Koshy, Managing Director & CEO of Open Network for Digital Commerce, said, “By leveraging ONDC’s open network and integrating advanced data frameworks, we are enhancing credit accessibility for underserved and rural populations. This initiative supports economic growth and promotes financial inclusion across Bharat.”

One of the focus areas of the government-backed ONDC network is to enable loan transactions for small business owners. The partnership will provide credit of up to ₹4 lakhs, available for both salaried and self-employed applicants. Applicants need to provide KYC documents along with their bank statements, and the service is open to individuals aged 21 and above. The loans are accessible to both existing bureau customers and new-to-credit customers, ensuring wide-ranging benefits.