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PhonePe today announced the launch of Credit Line on UPI on its platform. Consumers who avail credit lines from their banks can now link these credit lines to UPI on PhonePe and seamlessly make merchant payments. This feature enables consumers to make purchases with ease across millions of merchants and avail the flexibility of short-term credit that helps them manage their monthly expenses better.
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 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.
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 is growing 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.”