PhonePe launched 'Credit Line on UPI', expanding payment flexibility for consumers and merchants

New Delhi [India], August 22 : PhonePe has announced the launch of its new feature, 'Credit Line on UPI,' aimed at enhancing the flexibility and convenience of transactions for its users.
According to PhonePe, this new offering allows consumers to link their credit lines from banks to the Unified Payments Interface (UPI) on the PhonePe platform, enabling seamless merchant payments and providing a new dimension to the digital payment ecosystem.
The Reserve Bank of India (RBI) recently broadened the scope of UPI to include pre-approved credit lines, a development that has paved the way for this new feature.
Known as 'Credit Line on UPI,' this innovation allows consumers to use their credit lines through UPI apps, increasing the number of merchants where credit lines can be utilized. This expansion aims to facilitate smoother transactions and greater accessibility for both consumers and merchants.
The introduction of 'Credit Line on UPI' enhances the payment experience by allowing consumers to make purchases across millions of merchants with ease.
By integrating their credit lines into UPI, users can now manage their monthly expenses more efficiently through short-term credit options. The feature is expected to simplify transactions and offer 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 transaction friction but also helps lower cart abandonment rates, leading to higher sales for businesses.
Merchants can easily incorporate the 'Credit Line on UPI' payment option by integrating with PhonePe PG, thereby 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 to UPI on the PhonePe app by following the steps-
Navigate to the profile section on the top left of the PhonePe app home page and select the bank from which the credit line was availed,
Link the credit line associated with the registered phone number by selecting the bank.
Set a UPI PIN to complete the linking process.
Once linked, the Credit Line option will appear as a payment instrument on the payment page during transactions.