DBT Bureau
Bhubaneswar, 22 August 2024
PhonePe has just introduced a new feature: Credit Line on UPI. This means that if you have a credit line with your bank, you can now link it to UPI on PhonePe and use it to pay at millions of merchants. This makes it easier to shop and manage your monthly expenses by giving you short-term credit flexibility.
Reserve Bank of India (RBI) recently expanded the scope of UPI to include pre-approved credit lines, called ‘Credit Line on UPI’, allowing consumers to avail of 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.
Along with consumers, the option also allows merchants on the PhonePe Payment Gateway (PG), to offer their customers an additional payment option at the time of checkout. This not only reduces friction but also lowers cart abandonment leading to higher sales. Merchants simply need to integrate with PhonePe PG to add ‘Credit Line on UPI’ as a payment option to enable this offering.
Commenting on the launch Deep Agrawal, Head of Payments at PhonePe said “We are excited to launch Credit Line on UPI on our platform. 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 focussed on offering a varied set of new use cases in close partnership with the ecosystem players.”
Credit line on UPI rides on the same UPI rails that millions of Indians are familiar with. Here’s how users can avail of it:
- Users can link their Credit Line on UPI by clicking on the profile section on the top left of the PhonePe app home page and select the bank from which they availed the Credit Line.
- The Credit Line associated with their registered phone number will be linked to UPI upon clicking on the bank.
- After linking, the user will be required to set a UPI PIN
- Once this is done, the Credit Line option will show up as a payment instrument on the payment page while the user is making a payment.
