.jpg)
Synopsis: PhonePe has launched a new feature enabling users to link pre-approved credit lines to UPI, simplifying payments at millions of merchants. This feature enhances financial flexibility for users and offers merchants an additional payment option, potentially boosting sales and reducing transaction friction. The initiative aligns with the Reserve Bank of India’s recent expansion of UPI's capabilities, reflecting PhonePe's commitment to revolutionizing digital payments in India.
In a move that further simplifies digital payments, PhonePe has introduced a new feature allowing users to link pre-approved credit lines to their Unified Payments Interface (UPI) accounts. This innovation is designed to enhance the convenience of making payments at millions of merchants across India, providing users with greater financial flexibility.
The new "Credit Line on UPI" feature is part of PhonePe's ongoing efforts to revolutionize the digital payment landscape in India. With this update, users who have pre-approved credit lines from their banks can seamlessly link these lines to their UPI accounts within the PhonePe app. This allows them to utilize their credit lines just like they would a debit card, but with the added benefit of short-term credit, which can be especially useful for managing monthly expenses without immediately depleting savings.
For merchants, the integration of credit lines into UPI offers an additional payment option, potentially reducing transaction friction and decreasing cart abandonment rates. The feature is also expected to drive higher sales as it provides consumers with a more flexible payment method.
This initiative follows the Reserve Bank of India’s recent expansion of UPI's capabilities to include pre-approved credit lines. Deep Agrawal, Head of Payments at PhonePe, emphasized that this new offering is set to unlock the potential of credit usage on UPI, further expanding the use of digital payments across the country. The ease of linking these credit lines is designed to be straightforward, ensuring that users can quickly set up and begin using this payment method.
