UPI payments giant PhonePe launches merchant lending platform

UPI payments giant PhonePe has announced the launch of merchant lending services on its platform.

The company said it aims to address the challenges faced by Indian small and medium enterprises (SMEs).

PhonePe said it will partner with banks and Non-Banking Financial Companies (NBFCs) to provide its 35 million+ merchants with seamless access to credit in a completely digital manner.

Since May 2023, PhonePe claims to have successfully facilitated over 20,000 loans through its trusted NBFC partners. Additionally, It is developing its own credit scoring system using cutting-edge data science-driven models, which further enhances the lending process and empowers SMEs to access credit more easily.

Previously, The fintech giant launched its payment gateway to compete with the likes of Razorpay and Cashfree in the larger offline and online merchant payments space.

Hemant Gala, Vice President of Financial Services, said, “Promoting financial inclusion is at the core of PhonePe’s mission. We are excited to launch Merchant Lending on our platform using the Marketplace Model, providing SMEs & MSMEs with access to organized credit and enabling their growth. By serving as a catalyst for the financial empowerment of MSME & SMEs, PhonePe is proud to contribute to the overall development of the economy and drive sustainable progress.’’

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