ICICI Bank and PhonePe on Tuesday entered a partnership to offer a credit line on UPI to customers of the Bengaluru-based fintech major.
Pre-approved customers on the PhonePe app can avail of a short-term credit line from ICICI Bank up to Rs 2 lakh with a repayment period of 45 days.
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The partnership between the bank and PhonePe, which is the largest player on Unified Payments Interface (UPI), comes at a time when the platform records transactions worth approximately Rs 200 crore every month.
PhonePe’s market share on UPI is pegged at 49 per cent, with the second-largest player Google Pay processing about 38 per cent of the total transaction volumes in the country.
“Credit line on UPI is yet another innovative product offering that will unlock and revolutionise access to and use of credit in the country. At PhonePe, we are focused on maximising the reach and availability of this product, and this partnership with ICICI Bank is a key milestone in that journey,” said Deep Agrawal, head of payments, PhonePe.
This is the company’s first partnership with any lender to offer the service.
“At the anvil of the festive season, the pre-approved customers of ICICI Bank can activate the credit line instantly to make payments for their festive shopping needs on PhonePe. Aimed at providing seamless digital credit, this offering is likely to play an important role in the personal banking experience of our customers,” said Niraj Tralshawala, product head – payment solutions, ICICI Bank.
The National Payments Corporation of India (NPCI) launched the ‘credit line on UPI’ service last year. It offers low-ticket, high-volume retail loans to individuals and businesses.
Apart from ICICI Bank, lenders such as Axis Bank, HDFC Bank, Indian Bank, Punjab National Bank (PNB), and State Bank of India (SBI) have gone live with this facility.
Among the apps, Bharat Interface for Money (BHIM), Google Pay, Paytm, PayZapp, Navi, and Tata Neu are live on this product offering.
First Published: Oct 08 2024 | 7:57 PM IST
