Payments service provider has partnered with the the National Payments Corporation of India (NPCI) to enable PayU merchants accept digital payments through credit lines.
“With over 380 million UPI users gaining easier access to credit line, the next big wave in digital payments is expected from credit. The enablement of pre-sanctioned credit lines by banks through UPI will empower businesses and consumers alike, fostering India’s financial inclusion agenda,” the company said in a statement.
“We are thrilled to be at the forefront of this transformative initiative. Our partnership with NPCI to accept pre-sanctioned credit line on UPI underscores our commitment to delivering innovative solutions to our merchants and financial flexibility to our consumers,” said Swaroop Kulkarni, Vice President, Products, PayU.
PayU will also provide insights on consumers’ credit types like pay-later or personal loans, letting merchants develop tailored growth strategies and improve customer experiences.
Similar to Buy Now Pay Later, the credit line on UPI is a pre-approved credit line or loan assigned by the bank that can be availed by customers if they don’t have the required balance in their linked accounts or wallets.
“Currently, savings account, overdraft account, prepaid wallets, and credit cards can be linked to the UPI. As announced, the scope of UPI is now being expanded by inclusion of credit lines as a funding account,” the central bank said in a statement.
Edited by Megha Reddy
