PhonePe has announced the launch of Credit Line on UPI on its platform. Consumers who avail credit lines from their banks can now link them 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.
The 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 utilized.
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.
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.
