PhonePe’s merchant lending marketplace will allow banks and NBFCs to offer credit to its 35 Mn merchant base
As part of the move, the company has launched a mobile app called PhonePe for Business, which, it claimed, will disburse loans in a ‘matter of minutes’
The company is also in the process of developing its own credit score using built on data science-driven models to further streamline the merchant lending process
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Mounting a major offensive against competitor Paytm, fintech major PhonePe on Friday (June 23) announced its foray in the merchant lending space. The fintech decacorn said it has launched a merchant lending marketplace where banks and NBFCs will be able to offer credit to its 35 Mn merchant base.
The move will enable PhonePe to leverage its distribution network and tech stack to further grow its lending vertical. On the other hand, banks and NBFCs will be able to deploy their expertise in underwriting, disbursals and loan collection to offer credit to merchants on a single platform.
As part of the move, the company has launched a mobile app called PhonePe for Business, which, it claimed, will disburse loans in a ‘matter of minutes’.
The company is also said to be developing its own credit score that will be built on data science-driven models to further streamline the merchant lending process and scale access to credit. This could largely allude to the company reportedly building its own credit underwriting process based on the merchant’s transaction history.
“… We are excited to launch Merchant Lending on our platform using the marketplace model, providing SMEs & MSMEs with access to organised 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,” said PhonePe’s vice-president of financial services Hemant Gala.
The announcement comes close on the heels of PhonePe shelving the ZestMoney acquisition deal, which was part of its efforts to further ramp up its financial services play.
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