PhonePe's 'Credit Line on UPI' Revolutionizes Digital Transactions

PhonePe has launched a new feature called 'Credit Line on UPI' that enables consumers to link their bank credit lines with UPI. This innovation, supported by RBI's recent policy expansion, aims to simplify transactions and increase financial flexibility for both consumers and merchants.

PhonePe has unveiled a groundbreaking feature named 'Credit Line on UPI,' designed to enhance transactional flexibility and convenience for its users. This feature allows consumers to connect their bank-issued credit lines to the Unified Payments Interface (UPI) on the PhonePe platform, facilitating seamless merchant payments and adding a new layer to the digital payment ecosystem.

This development follows the Reserve Bank of India's recent expansion of UPI's scope to include pre-approved credit lines. Dubbed 'Credit Line on UPI,' the feature enables consumers to utilize their credit lines through UPI apps, thereby increasing the reach of credit use across a broader array of merchants. The aim is to ensure smoother transactions and greater accessibility for both consumers and merchants.

The 'Credit Line on UPI' feature revolutionizes the payment experience by allowing users to make effortless purchases from millions of merchants. By integrating credit lines into UPI, consumers can efficiently manage their monthly expenses through short-term credit options. This initiative is anticipated to simplify transactions and provide users with enhanced financial flexibility.

For merchants utilizing the PhonePe Payment Gateway (PG), this new payment option offers an additional method at checkout, alleviating transaction friction and reducing cart abandonment rates. The integration is expected to drive higher sales for businesses.

Merchants can easily adopt the 'Credit Line on UPI' by integrating with PhonePe PG, expanding their payment acceptance capabilities. Deep Agrawal, Head of Payments at PhonePe, expressed enthusiasm for the launch, stating, "We are thrilled to introduce Credit Line on UPI on our platform. This feature follows the success of Rupay Credit Cards on UPI and is set to unlock the potential of credit usage on UPI."

Agrawal added, "We believe digital payments in India are gaining significant traction, and PhonePe is dedicated to providing top-notch solutions to our customers. This offering aims to revolutionize the access and use of credit in the country, with a focus on introducing new use cases in collaboration with ecosystem partners."

Users can easily link their credit lines to UPI on the PhonePe app by navigating to the profile section, selecting their bank, and setting a UPI PIN. Once linked, the Credit Line option will appear as a payment method during transactions. (ANI)

(With inputs from agencies.)