PayU, a fintech platform, and Marg ERP, a business management platform empowering over 10 lakhs plus retailers, distributors, manufacturers and MSMEs, has announced a strategic partnership to power Marg Pay, Marg ERP’s integrated payments solution, for the digital payments collection and reconciliation for India’s pharma distributors and MSME retailers. The collaboration embeds PayU's payment infrastructure directly into Marg ERP's workflow, creating a single connected environment for ordering, payments and reconciliation, all in one place.

The burden of manual payment reconciliation – slow, error-prone and systematically exposed to cash pilferage, has long been a daunting burden for India’s pharma distributors and MSME retailers. For a segment as high frequency and operationally critical as pharma distribution, these hurdles and inefficiencies often translate directly into working capital risk, revenue loss and customer churn. Marg Pay, integrated with PayU’s payment solution, addresses this challenge at the foundational layer, turning everyday invoicing, collection and reconciliation workflows into high-scale, high-retention digital payments mechanism.

MSME retailers will now be able to generate Dynamic QR codes against every invoice, enabling instant digital payments automatically reconciled within Marg ERP. Distributors, meanwhile, will be able to generate payment links against individual invoices, with payments reconciled bill-by-bill and posted directly into the ERP, powering faster collections, same-day settlements and improved operational efficiency.

Vineet Sethi, Chief Growth and Marketing Officer, PayU, said, “Digital payments are integral to how businesses operate, yet collections and reconciliation remain fragmented and laborious. Together with Marg ERP, we aim to simplify financial administration and bring more predictability to the cash flow of Indian pharma distributors and retailers. This deepens Marg ERP’s role in digitising the pharma sector while expanding PayU’s positioning as an embedded finance aggregator.” 

Thakur Anup Singh, CMD, Marg ERP, said, “Digital payments are no longer just about collecting money, they are about creating smarter financial cash flows for all trades. Through our partnership with PayU, we are strengthening the Marg Pay ecosystem to help distributors, retailers and MSMEs accept payments securely. Not only payment, Marg Pay also facilitates the reconciliation for retailers and distributors accounts automatically. We enable businesses to operate with greater efficiency and confidence”.

The partnership between PayU and Marg ERP will further extend to Marg's eRetail application that supports and powers B2B ordering, payments and reconciliation.