Small-business-focused lending platform Indifi on Friday announced a partnership with Alphabet’s payment app Google Pay to help it find new lending opportunities from merchants.
Google Pay has 10 million merchants, who will have the option to get a pre-approved loan from Indifi in the app itself, largely based on their payment receipt data, Aditya Harkauli said. , commercial director of Indifi.
It may be noted that the partnership comes at a time when banking regulator Reserve Bank of India (RBI) has expressed concerns over the growing role of big tech in banking, especially after apps started collecting deposits.
Harkauli clarified that the partnership with GPay was limited to advances only and added that the lending risk would be taken by a wholly owned subsidiary of Indifi, which is backed by a host of investors including Omidyar.
The company already has partnerships with players like Amazon, Flipkart, Swiggy and Zomato to secure loans from their respective ecosystems, and the tie-up with GPay is an extension of that.
Harkauli said the partnership is already underway and in a year the company expects 10% of all loans it gets to come from the GPay partnership, and expects the size of the notes loans is an average of around Rs 2.5 lakh.
These will largely be working capital loans with terms of 18 to 30 months, and may also include borrowing from small traders for purposes such as store renovations etc., he said. he declares.
(With PTI entries)
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Posted: Friday, January 14, 2022, 2:53 PM IST