PhonePe, a leading digital payments platform, has launched a new feature, ‘Credit Line on UPI,’ allowing consumers to link pre-approved credit lines from their banks directly to UPI for seamless payments across millions of merchants.
Announced on August 22, this feature follows the Reserve Bank of India’s (RBI) recent decision to expand UPI’s capabilities to include pre-approved credit lines, known as ‘Credit Line on UPI.’ This development enables consumers to access and use credit through UPI apps, offering greater flexibility in their payment options.
PhonePe highlighted that customers and merchants using the PhonePe Payment Gateway (PG) will benefit from this new feature, which aims to reduce cart abandonment and boost sales by offering more payment flexibility at checkout. By integrating with PhonePe PG, merchants can now enable ‘Credit Line on UPI’ as a payment method.
Deep Agrawal, Head of Payments at PhonePe, expressed enthusiasm about the launch: “We are excited to introduce Credit Line on UPI on our platform. This is our second offering that enhances credit usage on UPI, following the success of Rupay Credit Cards on UPI. We believe digital payments in India are growing rapidly, and PhonePe is committed to providing innovative, best-in-class solutions. This offering will revolutionize access to and use of credit in the country, and we are focused on delivering new use cases in partnership with ecosystem players.”
To use this feature, users can link their Credit Line on UPI by navigating to the profile section in the PhonePe app and selecting the bank from which they obtained the Credit Line. The Credit Line linked to their registered phone number will then be associated with UPI. After setting a UPI PIN, the Credit Line option will appear as a payment instrument during transactions.
