It processes transactions worth around Rs 100-200 crore a month. Credit cards on UPI clock around Rs 10,000 crore a month.
Fintech major PhonePe on Thursday announced the launch of a credit line on the Unified Payments Interface (UPI) feature, almost a year after the National Payments Corporation of India (NPCI) launched the feature.
This feature allows customers to access short-term credit.
The option also enables merchants on PhonePe’s payment gateway to offer customers an additional payment option at checkout.
“This not only reduces friction, but also reduces shopping cart abandonment, leading to increased sales,” the company said in a statement.
This feature enables the availability of high-volume, low-cost retail loans.
The UPI credit facility has had a slow start as the NPCI is yet to finalise the interchange fee for this facility. It is expected to announce the interchange fee this year, which will range between 1% and 1.2% per transaction, Business Standard reported in April.
Currently, lenders like Axis Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab National Bank (PNB) and State Bank of India (SBI) offer this facility.
It processes transactions worth around Rs 100-200 crore a month. Credit cards on UPI clock around Rs 10,000 crore a month.
“This is the second offering that will enable customers to leverage the potential of credit usage on UPI, following the tremendous success of RuPay credit cards on UPI. We believe that 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,” said Deep Agrawal, Chief Payments Officer, PhonePe.
First published: August 22, 2024 | 15:46 IS
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