PhonePe has introduced a new feature called ‘Credit Line on UPI,’ designed to enhance the convenience of transactions for its users. This feature allows consumers to connect their credit lines from banks to the Unified Payments Interface (UPI) on the PhonePe platform, enabling seamless merchant payments and further expanding the digital payment ecosystem.
This innovation follows a recent move by the Reserve Bank of India (RBI) to expand UPI’s scope to include pre-approved credit lines. With ‘Credit Line on UPI,’ users can now utilize their credit lines at a wide range of merchants, making transactions smoother and more accessible.
The feature allows consumers to integrate their credit lines into UPI, which provides greater flexibility in managing monthly expenses with short-term credit options. It simplifies the transaction process and enhances the overall payment experience, allowing consumers to make purchases with ease across millions of merchants.
For businesses using PhonePe’s Payment Gateway (PG), this new option offers an additional payment method at checkout, reducing transaction friction and lowering cart abandonment rates. By incorporating ‘Credit Line on UPI,’ merchants can increase sales by expanding their payment acceptance capabilities.
Deep Agrawal, Head of Payments at PhonePe, expressed excitement about the launch, saying, “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.” He added that PhonePe is committed to providing innovative payment solutions and sees this feature as revolutionizing access to credit in India.
To use the feature, users can easily link their credit lines to UPI on the PhonePe app by navigating to the profile section, selecting their bank, and setting a UPI PIN. Once linked, the Credit Line will appear as a payment option during transactions.
