India-based digital payments fintech PhonePe has launched ‘Credit Line on UPI’ on its platform, enabling consumers to link credit links from their banks to UPI on PhonePe, easing merchant payments.
The new feature from PhonePe hopes to help consumers make purchases with ease across millions of merchants and leverage the flexibility of short-term credit that helps them manage their monthly expenses better.
Reserve Bank of India (RBI) recently expanded the scope of UPI to include pre-approved credit lines, called ‘Credit Line on UPI’, enabling consumers to use credit lines through banks and use these through their UPI apps. This will further help exponentially increase the number of merchants where credit lines can be utilised.
Deep Agrawal, head of payments at PhonePe
Deep Agrawal, head of payments at PhonePe, commented: “This is the second offering that will unlock the potential of credit usage on UPI, following the tremendous success of Rupay Credit Cards on UPI.
“We believe digital payments in India are growing from strength to strength and PhonePe is committed to providing the most innovative and best-in-class solutions to our customers. This offering will revolutionise the access and use of credit in the country and we are focused on offering a varied set of new use cases in close partnership with the ecosystem players.”
Along with consumers, the option also enables merchants on the PhonePe Payment Gateway (PG), to offer customers an additional payment option at checkout – reducing friction and lowering levels of cart abandonment.
To utilise the offering, merchants simply need to integrate with PhonePe PG to add ‘Credit Line on UPI’ as a payment option.
The new offering also uses the same UPI rails that millions of Indians are already familiar with. To make the most of the new offering Users can link their ‘Credit Line on UPI’ on the fintech’s app.
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