In a strategic move to bolster India’s digital financial ecosystem, Google Pay is embarking on a significant expansion, collaborating with financial institutions to introduce a range of financial products aimed at addressing the credit gap in the country. These initiatives are poised to extend responsible credit to eligible individuals and empower small merchants, fostering economic growth and digital inclusion.
With a strong focus on financial inclusion, Google Pay is partnering with regulator-authorized financial institutions to underwrite and offer a suite of financial services. These services are designed to provide consumers and small businesses with easier access to formal credit, which remains significantly under-penetrated in India compared to global and regional averages. The move is aligned with the Indian government’s vision to expand the reach of responsible credit and financial services.
Some of the key offerings from Google Pay include:
Merchant Credit Line: Google Pay is enabling a merchant credit line in partnership with ePayLater, designed to meet the working capital requirements of small merchants. This offering will empower businesses to procure stock and supplies across both online and offline distribution channels, driving growth and economic opportunities.
Sachet Loans: Recognizing the need for smaller-ticket loans with simplified repayment options, Google Pay is introducing sachet loans in collaboration with DMI Finance. These loans start as low as ₹15,000 and offer easy repayment options, starting at just ₹111. This initiative aims to bring convenience and accessibility to small and medium-sized businesses (SMBs).
Expanding the Portfolio of Personal Loans: Google Pay, in collaboration with financial institutions such as Axis Bank, is expanding its portfolio of personal loans. This expansion ensures a broader range of options for consumers seeking personal financial solutions.
Credit on UPI: Google Pay users can now avail credit lines from banks on the Unified Payments Interface (UPI), enabling seamless payments and credit transactions. The integration of credit cards into the platform allows users to access credit and conduct transactions with ease.
Google Pay’s commitment to driving financial inclusion aligns with the government’s vision to democratize access to responsible credit and financial services. These initiatives aim to bridge the credit gap in India and empower individuals and small businesses by offering tailored financial products that enhance economic opportunities.