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

PhonePe on August 22, 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.

Benefit of this feature

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.

Expansion of the scope of UPI

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.

Option of an additional payment

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.

Credit line on UPI

Credit line on UPI rides on the same UPI rails that millions of Indians are familiar with. Here’s how users can avail 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 on 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.

About PhonePe Group:

PhonePe Group is India’s leading fintech company. Its flagship product, the PhonePe digital payments app, was launched in Aug 2016. In just 8 years, the company has scaled rapidly to become India’s leading consumer payments app with 550+ million registered users and a digital payments acceptance network of 40+ million merchants.