Google Pay's Expansion: Introducing Credit Products in India

In a bid to broaden its presence in India and cater to the large segment of the population still lacking access to comprehensive financial services, Google Pay has announced plans to offer a range of credit products to consumers and small businesses.

May 28, 2024 - 09:24
Jun 3, 2024 - 08:04
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Google Pay's Expansion: Introducing Credit Products in India
Google Pay's Expansion: Introducing Credit Products in India

 The company will collaborate with accredited lenders and financing firms to facilitate this initiative. While the credit will be underwritten by established financial institutions, Google Pay will work closely with them to ensure accessibility, simplicity, and convenience for users.

  • Competing with industry leaders like Paytm and PhonePe in India, Google Pay aims to provide sachet or small-ticket loans, starting at Rs 15,000, to merchants in partnership with DMI Finance. Additionally, to address working capital requirements, the company will introduce a credit line for merchants in collaboration with ePayLater. According to the company, credit penetration in India is still significantly lower compared to global averages.
  • In an era marked by a surge in online applications, which has unfortunately also led to an increase in financial frauds and scams, Google Pay emphasizes its commitment to disbursing responsible credit to its users. Working in conjunction with PhonePe and Paytm, which collectively dominate the country’s UPI volumes, Google Pay will prioritize providing accessible credit options as part of its growth strategy in India, as stated by Vice-President Ambarish Kenghe.
  • For consumers, Google Pay is expanding its personal loans portfolio through a partnership with Axis Bank, making personal loans accessible directly through the Google Pay app. Earlier this year, the platform introduced the ability to link Rupay credit cards, allowing seamless payments via UPI. Building on this, in collaboration with payment service provider ICICI Bank, users can now access credit lines from banks on UPI and use them to make payments through Google Pay, similar to UPI transactions.

This move marks a significant step forward in Google Pay’s mission to democratize financial services, making credit more accessible and secure for both consumers and businesses in India.

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Jennifer Winget As a passionate news reporter, I am fueled by an insatiable curiosity and an unwavering commitment to truth. With a keen eye for detail and a relentless pursuit of stories, I strive to deliver timely and accurate information that empowers and engages readers.