PhonePe, a company that helps with UPI services, is getting ready to provide a new service—giving out loans.
Starting in January 2024, people will be able to get loans using the PhonePe app. The company is almost done talking with about 5 banks and other financial companies.
PhonePe, which is owned by Walmart, will work as a middleman to help distribute these loans.
This is good news for over 50 crore customers and 3.7 crore small and big business owners who use the UPI app.
PhonePe is expanding its reach beyond just digital payments. According to a report from the Economic Times, five banks and financial companies have agreed to join PhonePe.
The company will make an official announcement about this soon. In about 6 months, people will be able to access various products on PhonePe.
Currently, the company is looking through its customer database to find people who qualify for different types of loans. Gradually, it will start sending them loan offers.
The company recently reached a milestone with over 50 crore customers. Additionally, there are about 3.7 crore merchants on the PhonePe platform.
PhonePe has also been in talks with Axis Bank to offer credit card services, which will begin soon. The company is planning to introduce a credit line in the coming years.
One of PhonePe’s strengths is its large customer base, and it wants to use this to its advantage.
The company has already succeeded in offering insurance services on its platform. Currently, they provide life, health, motor, and car insurance through tie-ups with companies like ACKO.
Customers who get insurance through PhonePe can also pay through monthly installments (EMI). By July this year, the company had sold 56 lakh insurance policies.