In a major announcement during the annual Google for India event in New Delhi, Google Pay (popularly called GPay), one of India's leading online payment service providers, revealed plans to introduce a suite of credit-oriented products aimed at both consumers and merchants. This initiative entails strategic collaborations with banks and non-banking financial companies (NBFCs).
During the event, a spokesperson for Google Pay stated that the company plans to introduce sachet loans for consumers and merchants in India, accessible via the Gpay app. Google Pay has teamed up with DMI Finance to facilitate these loan services.
Sachet loans, designed for the Indian market, are small-ticket loans ranging from Rs 10,000 to Rs 1 lakh, featuring flexible repayment options spanning from 7 days to 12 months.
ALSO READ:After Made-In-India iPhones, It's Time For Homegrown Google Pixel Smartphones & Chromebooks
This move follows Google's previous efforts to foster financial inclusion, such as their partnership program with Indifi, a lending platform focused on small businesses, which aimed to source new lending opportunities from merchants.
Furthermore, Google Pay has been proactive in addressing the working capital requirements of merchants. By collaborating with ePayLater, the platform has offered credit lines starting from as low as Rs 15,000, with the option to repay in manageable EMIs starting from Rs 111, with DMI Finance as their loan service partner.
On the consumer side, Google Pay has been expanding its personal loans portfolio through a partnership with Axis Bank and providing credit lines from banks via UPI, in association with ICICI Bank. These services prioritise data privacy, security, consent, and user control, ensuring the protection of users' financial information.
Google emphasised their commitment to digital credit accessibility with a focus on privacy safeguards, with a spokesperson from the tech giant explaining, "By digitising credit with privacy safeguards, the platform intends to expand the reach of formal credit, catering to a broader audience with lower incomes."
It is worth noting that prior to this announcement, Google Pay and DMI Finance had already ventured into the realm of personal loans, indicating the company's ongoing efforts to diversify its financial services.
ALSO READ: Hum-To-Search Songs, Stable Volume, More: Here's A Quick Look At YouTube's Latest Updates
Additionally, Google is taking steps to combat sophisticated financial scams in the digital sphere. They unveiled their flagship program, DigiKavach, an early threat detection and warning system. DigiKavach is designed to identify and analyse emerging financial fraud patterns and swiftly implement effective countermeasures to prevent widespread harm caused by bad actors online.
This program promotes collective collaboration and information sharing among partners within the ecosystem. By studying the tactics of scammers and working closely with experts, DigiKavach aims to proactively identify and mitigate new scams, contributing to a safer and more secure digital ecosystem for all stakeholders.