Fintech platform PayU has entered into a strategic partnership with business management software provider Marg ERP to streamline digital payment collections and reconciliation for India’s pharma distributors, retailers and MSMEs.
The collaboration will integrate PayU’s payment infrastructure into Marg ERP’s business management platform, enabling users to manage ordering, payments and reconciliation within a single workflow through Marg Pay, the company’s integrated payments solution.
Marg ERP currently serves over 10 lakh retailers, distributors, manufacturers and MSMEs across the country.
Tackling payment reconciliation challenges
The companies said manual payment reconciliation continues to be a major operational challenge for pharma distributors and small businesses, often resulting in delayed settlements, accounting errors, cash pilferage and working capital pressures.
By embedding PayU’s payment capabilities into Marg ERP, the partnership aims to automate invoicing, collections and reconciliation, helping businesses improve cash flow visibility and operational efficiency.
Dynamic QR codes and automated reconciliation
Under the partnership, MSME retailers will be able to generate dynamic QR codes for every invoice, allowing customers to make instant digital payments that are automatically reconciled within the ERP system.
Pharma distributors can generate invoice-specific payment links, enabling bill-wise payment reconciliation that is automatically posted into the ERP. The companies said this would support faster collections, same-day settlements and reduced manual intervention.
The partnership will also extend to Marg’s eRetail application, which facilitates B2B ordering, payments and reconciliation for businesses.
Driving embedded finance
PayU Chief Growth and Marketing Officer Vineet Sethi said while digital payments have become integral to business operations, collections and reconciliation remain fragmented for many enterprises.
He said the collaboration would simplify financial administration for pharma distributors and retailers while bringing greater predictability to cash flows, strengthening Marg ERP’s digitisation efforts and expanding PayU’s role as an embedded finance provider.
Marg ERP Ltd Chairman and Managing Director Thakur Anup Singh said digital payments have evolved beyond simply collecting money to enabling smarter financial management for businesses.
He said the strengthened Marg Pay ecosystem would help distributors, retailers and MSMEs accept payments securely while automatically reconciling accounts, allowing businesses to operate with greater efficiency and confidence.