If you are a PhonePe user then this latest announcement by the company might be a relief for you. PhonePe users who avail credit lines from their banks can now link these credit lines to UPI on the platform and seamlessly make merchant payments.
Along with consumers, this option will also allow merchants on the PhonePe Payment Gateway (PG) to offer their customers an additional payment option at the time of checkout. Merchants simply need to integrate with PhonePe PG to add Credit Lines on UPI as a payment option to enable this offering.
PhonePe made this announcement yesterday after the 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 of credit lines through banks and use these through their UPI apps.
Steps to avail of Credit Line On UPI-
- 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 selecting the bank from which they availed Credit Line
- The credit line associated with their registered phone number will be linked to 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
As per PhonePe’s press release, 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 are growing from strength to strength and PhonePe is committed to providing the most innovative and best-in-class solutions to our customers. This offering will revolutionize 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.”
