At the Global Fintech Festival in Mumbai, industry leaders highlighted the potential of the credit market, which is more than double the size of the payment market in India. Sameer Nigam, CEO of PhonePe, noted that UPI transactions reached 314 trillion rupees ($3.2 trillion) in the last financial year, with PhonePe and Google Pay dominating over 70% of these transactions.
BharatPe recently launched BharatPe Flex, offering pre-approved credit lines for UPI payments, addressing the fact that only 15% of Indian adults currently have access to formal credit. The demand for small, unsecured loans is rising, and fintechs are leveraging transaction data to assess lending risks.
Prime Minister Narendra Modi emphasized the need for fintechs to expand non-payment transactions to boost economic activity, while Amazon Pay sees digital lending as a major opportunity, currently serving over 10 million customers with its pay later services. Smaller cities are emerging as key areas for digital credit adoption, indicating a shift in financial accessibility across the country