PhonePe Introduces a Platform for Merchant Lending
On Friday, PhonePe announced the launch of its merchant lending platform, enabling banks and NBFCs (non-banking financial organizations) to provide its sizable merchant network of over 35 million merchants digital access to loans.
This underscores PhonePe’s dedication to promoting financial inclusion for SMEs, according to the company. SMEs in India have traditionally struggled to get organized financing, which has stunted their development and limited their potential, according to a statement from PhonePe.
In terms of market share by value, PhonePe dominates UPI transactions with over 50%.
In order to ensure that loans are granted by lending partners quickly, it was further said that PhonePe has created an end-to-end experience for its PhonePe for Business app. PhonePe makes use of its extensive tech skills and solid distribution network, while the lending partners provide their underwriting, disbursement, and loan collecting experience.
Since May 2023, PhonePe claims that it has successfully enabled the disbursement of over 20,000 loans via its reliable NBFC partners.
“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,” said Hemant Gala, vice-president (financial services) of PhonePe. PhonePe is honored to support the economic growth of MSME & SMEs and promote sustainable development by acting as a catalyst for their financial empowerment.
