Fintech

PhonePe Launches Credit Line on UPI Platform for Seamless Merchant Payments

• ByStartupStory     |    August 23, 2024

PhonePe, a leading fintech company backed by Walmart, announced the launch of its Credit Line on UPI feature on Thursday. This new offering allows consumers to effortlessly connect their bank-approved credit lines to the UPI platform on PhonePe, streamlining payments across millions of merchants.

The introduction of this feature offers consumers the flexibility to manage their monthly expenses by utilizing short-term credit options. It is designed to provide a hassle-free shopping experience, enabling users to make purchases with ease across a vast network of merchants.

“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 strength to strength and PhonePe is committed to providing the most innovative and best-in-class solutions to our customers,” said Deep Agrawal, Head of Payments at PhonePe.

The Reserve Bank of India (RBI) recently expanded the scope of UPI to include pre-approved credit lines, allowing users to access credit lines via banks and use them through their UPI apps. With this expansion, PhonePe aims to enhance the payment options available to consumers, making it easier to manage payments and reduce the financial strain of monthly expenses.

Merchants using the PhonePe Payment Gateway will also benefit from this development. They can now offer customers an additional payment option at checkout, which is expected to reduce cart abandonment and boost sales. To implement this feature, merchants simply need to integrate with the PhonePe Payment Gateway and add the Credit Line on UPI as a payment method.

“This will further help exponentially increase the number of merchants where credit lines can be utilised,” the company added.

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