Fintechs Shift Focus from Payments to Credit Market in India
India's fintech companies, having revolutionized digital payments through platforms like PhonePe and Google Pay, are now targeting the underserved credit market. With only 15% of adults in India having access to formal credit—well below the global average—and over 85% of micro, small, and medium enterprises relying on informal loans, fintechs see a significant opportunity for growth. At the Global Fintech Festival in Mumbai, industry leaders highlighted that digital credit could surpass payments as the next major wave of transformation. PhonePe's CEO Sameer Nigam noted that the potential size of India’s credit market is more than double its payment sector. UPI transactions reached 314 trillion rupees ($3.2 trillion) last fiscal year, with PhonePe and Google Pay dominating over 70% of these. Fintechs are leveraging transaction data from digital payments to assess risk for unsecured small loans. Products like BharatPe Flex offer pre-approved credit lines up to ₹60,000 via UPI. Prime Minister Narendra Modi encouraged fintech firms to expand beyond payment services and boost access to capital for SMEs.
Topics: credit market growth digital payments Fintech UPI (Unified Payments Interface)