In a strategic move to enhance digital credit access, ICICI Bank and PhonePe have partnered to offer a new credit line service on the Unified Payments Interface (UPI). Through this partnership, pre-approved PhonePe users can access short-term credit of up to ₹2 lakh, with a repayment window of 45 days.
This collaboration comes as UPI transactions continue to grow, with PhonePe leading the market with a 49% share. According to PhonePe’s Head of Payments, Deep Agrawal, this offering aims to revolutionize credit access in India, marking a significant step for PhonePe in its mission to broaden credit availability.
Niraj Tralshawala, Product Head of Payment Solutions at ICICI Bank, highlighted the timing of the launch just before the festive season, providing customers an instant credit solution for their shopping needs. This partnership is ICICI Bank’s first with PhonePe for this service, leveraging the National Payments Corporation of India’s (NPCI) ‘credit line on UPI’ feature, which was introduced last year.
Also Read | ICICI Bank and MakeMyTrip unveils co-branded credit card for travel enthusiasts
Currently, other major banks, including Axis Bank, HDFC Bank, and SBI, also offer credit lines on UPI, with platforms like Google Pay and Paytm joining PhonePe in facilitating this service.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
