The payment solutions provider PayU announced a collaboration with the National Payments Corporation of India (NPCI) to introduce the ‘Credit Lines on UPI’ feature on its platform. This initiative aims to provide merchants with avenues for financial security and growth.
According to a media release, PayU stated that the integration of pre-sanctioned Credit Lines through UPI by banks will empower both businesses and consumers, aligning with India’s financial inclusion agenda.
As part of the integration process, PayU will share information about various identifiers related to the type of credit undertaken by consumers, such as pay-later options or personal loans. This data will enable merchants to develop strategic growth strategies and tailor products for enhanced customer experiences.
The company anticipates that over 380 million UPI users will benefit from easier access to Credit Lines, as it believes the next significant advancement in digital payments will come from credit-based transactions.
PayU, known for offering more than 100 local digital payment methods and value-added data insight solutions, serves nearly five lakh merchants across offline and online channels. It is a payments partner for nearly 60% of e-commerce merchants.
Earlier reports highlighted the introduction of Pre-sanctioned Credit Lines at Banks through UPI, aiming to revolutionize lending by offering pre-approved credit lines to individuals and businesses. Leveraging technologies like data analytics and artificial intelligence, banks can identify credit line opportunities for customers and merchants engaged in significant UPI-based digital transactions.
To access the credit line on UPI service, users are required to submit a formal application to their bank, which will then evaluate various financial aspects including eligibility, income, credit score, and repayment history before providing the credit facility.
