ICICI Bank launches an instant digital lending service called PayLater for small ticket transactions online and in-store. This invite-only service is available for eligible customers whose creditworthiness is assessed using an algorithm developed by ICICI. This instant credit option –initially meant for Ola ridesharing drivers– is gaining ground.
ICICI Bank introduces pre-approved instant digital credit offers (for amounts ranging from Rs.10, 000 to Rs.25,000) enabling their customers to pay for small ticket purchases on-the-spot. This service applies to online and in-store transactions; it complies with the in place Indian Unified Payment Interface (UPI). Applicants may pay back their loan within 45 days, interest-free.
The subscription process is fully digital and can be completed in a matter of minutes. Also, PayLater will first be available by invitation to select customers, and will mostly be intended for Millennials.
Customers’ creditworthiness is assessed based on ICICI Bank’s in-house algorithm building on data such as Credit Bureau checks, balance patterns, or their relationship with their bank.
Comments – ICICI Bank consolidating their position on the credit market
The Indian institution unveiled several instant credit-related services over the months, keeping in mind both individual and business customers. These short-term loans are a transparent and straightforward means to address younger customers, whose credit history still is poor, and who mostly buy online (roughly 2 million customers according to this bank’s assessments). Another way for ICICI Bank intends to consolidate their position on the Indian digital lending market which might be worth $1 billion in the next five years.
Likewise, they recently launched a co-branded Visa credit card in partnership with Amazon Pay. Amazon Pay ICICI Bank Credit Card allows Amazon Prime members to rely on a cashback system for a wide range of products (food delivery, ticketing services, utility payments, etc.).