• Source:ANI
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PhonePe has announced the introduction of its new feature ‘Credit Line on UPI’, which aims to improve the flexibility and convenience of transactions for its users. According to PhonePe, the new offering will allow customers to link their credit lines from banks to the Unified Payments Interface (UPI) on the PhonePe platform, making seamless merchant payments possible and providing a new dimension to the digital payments ecosystem.

The Reserve Bank of India (RBI) recently expanded the scope of UPI to include pre-approved credit lines, which has paved the way for this new feature.

Dubbed ‘Credit Lines on UPI’, the innovation will allow customers to utilize their credit lines through the UPI app, increasing the number of merchants who can use credit lines. The expansion aims to facilitate smooth transactions and greater accessibility for both consumers and merchants.

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The introduction of ‘credit lines on UPI’ enhances the payment experience by making it easier for customers to make purchases across millions of merchants. By consolidating their credit lines in UPI, users can now manage their monthly expenses more efficiently through short-term credit options. This feature is expected to simplify transactions and provide greater financial flexibility to users.

For merchants using the PhonePe payment gateway (PG), the new option provides an additional payment method at checkout. This integration not only reduces transactional friction but also helps lower cart abandonment rates, resulting in higher sales for the business.

Merchants can easily incorporate the ‘Credit Line on UPI’ payment option by integrating with PhonePay PG, expanding their payment acceptance capabilities.

Deep Agrawal, Head of Payments at PhonePe, expressed enthusiasm about the launch, stating, "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, "We believe digital payments in India is growing 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."

Users can easily link their credit lines with UPI in the PhonePe app by following the steps below:

- Navigate to the Profile section on the top left of the PhonePe app home page and select the bank from which the credit line is received.

- Select the bank and link the credit line associated with the registered phone number.

-Set a UPI PIN to complete the connection process.

- Once linked, the credit line option will appear as a payment instrument on the payment page during the transaction.

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(With ANI's Inputs)