Digital payments platform Google Pay has partnered with digital lending startup ZestMoney, and other digital lenders and NBFCs to add lending to its payment business.
The integration of Zest Money with Google Pay on GPay’s digital store’s Spot platform will allow users to avail credit with ZestMoney from Google Pay and is live. As reported by Business Standard (1), ZestMoney has already received thousands of applications in the short duration of the platform going live.
With this, Google Pay will be signaling a larger interest to tap the financial services market in the country, which is set to become a $1 trillion opportunity in the next five years.
Users can register themselves on GPay, complete their KYC, and check their eligibility for a credit limit without having to manually visit ZestMoney’s app or website. The feature is presently available on Android but will soon be launching on iOS as well.
ZestMoney, with this partnership, would allow users to avail credit up to their eligible limit, which can be used across 3,000 online and offline merchant stores, including Cure.fit, Myntra, MakeMyTrip, Mi, Amazon, and Flipkart.
COVID-19: Biggest opportunity for lending
Google rolled out its Spot feature in September last year, allowing businesses to set up virtual stores on its platform. It has helped merchants hailing from different categories, be it retail or financial services, to create experiences for consumers on the digital payments platform. GPay also has Spot stores for 5Paisa and Groww in its investment category.
Fintech firms have seen a surge in digital payments since the pandemic, which is why they have started strengthening their positions in the credit lending space. Paytm increased its credit limit up to Rs 1 lakh of monthly spending, allowing customers to pay for more expensive items like electronic items, furniture, etc.
Paytm CEO Vijay Shekhar talked about this during his recent webinar, saying lending will face one of the biggest opportunities during and after the COVID-19 pandemic.