Google is deepening it’s financial business in India by lending money via it’s Google Pay app (GPay), although not directly.
The company has partnered with several local banks to issue loans to users and credit lines to merchants for their quick business needs. While the banks do all the processing and collecting of money, Google Pay acts as an intermediate platform for promoting these offers.
Availing Credit Through GPay
The No.2 popular UPI app for petty transactions in India, Google Pay, is expanding it’s services to include credit lending via it’s partner banks soon. In an interview with TechCrunch, Ambarish Kenghe, VP of Google Pay, said the company has partnered with Axis Bank to offer loans to individuals on GPay and credit lines to merchants via ICICI Bank.
Though a billion people have bank accounts in India, most aren’t parking their money in these accounts, making it harder for credit bureaus to build a reliable profile of people. This makes it hard for lenders (like banks) to trust the loan-takers, resulting in low credit issuances.
This is where Google steps in with suitable data, having all the transaction history of its users, to help both lenders and individuals process loans. Well, to remind you, Google doesn’t issue these loans but acts as a medium for the partner banks to serve its customers.
“What we are doing is enabling credit, simplifying the process, and working with the industry to ensure responsibility.”
Google is also pushing it’s partner banks to issue sachet loans to merchants that serve their small-ticket credit requirements. Finally, the company has also partnered with HDFC Bank to widen the local Rupay card network, which lets users make merchant transactions directly through their UPI credit line.
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