PhonePe, a Bengaluru based fintech start-up has introduced a credit line feature on the unified payments interface or UPI. This new function enables the consumers to avail the small ticket credit facilities right through the UPI payments. Also, the merchants can now allow the customers to make payment through credit on the payment gateway of PhonePe. This is supposed to improve the shopping experience and minimize cases of buyers leaving the shopping cart, thus increase sales.
The UPI credit line feature can be said to be a major advancement in the direction of broadening the retail loans. With the low ticket size, high volume credit, PhonePe will now be able to target the broad base of customers and businesses. The NPCI is still to fix the interchange fees for this facility but the opening of this new channel is expected to spur growth in the digital lending segment.
