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Walmart backed fintech firm PhonePe on Thursday launched Credit Line on UPI on its platform to enable consumers availing credit lines from their banks to seamlessly link them to UPI on PhonePe for merchant payments.
The feature will enable consumers to purchase with ease across millions of merchants and avail the flexibility of short-term credit that helps them manage their monthly expenses better.
“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 is 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) expanded the scope of UPI to include pre-approved credit lines, which allows users to avail credit lines through banks and use them through their UPI apps.
It will allow merchants on the PhonePe Payment Gateway to offer customers an additional payment option at the time of checkout, which will help reduce cart abandonment and lead to higher sales, the company said. To enable this offering, merchants can integrate with PhonePe PG to add a Credit Line on UPI as a payment option.
“This will further help exponentially increase the number of merchants where credit lines can be utilised,” the company said.
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