By Google Pay is set to introduce fixed deposits (FDs) on its platform through collaboration with fintech startup Setu, marking a significant expansion of its financial services.
Partnership with Setu
Setu, known for its application programming interface (API) infrastructure, offers a range of APIs covering bill payments, savings, credit, and payments. This partnership will enable Google Pay users to access FDs directly from the platform.
Initial Offerings and Process
Initially, Google Pay plans to offer FDs from small finance banks such as Equitas Small Finance Bank, with others like Ujjivan Small Finance Bank and AU Small Finance Bank in the pipeline. To engage in this service, users will need to complete an Aadhaar-based KYC process using a one-time password (OTP).
Variety of Tenors and Interest Rates
Setu has already developed a testing version on the platform offering various tenors for FDs, ranging from 7 to 365 days. The interest rates will vary based on the duration, starting from 3.5% for shorter periods up to 6.35% for a one-year FD. These rates aim to attract users looking for competitive returns on their savings.
User Base and Market Reach
With Google Pay boasting 150 million monthly active users in India, this move has the potential to reach a vast audience and cater to diverse financial needs. The inclusion of FDs aligns with Google Pay’s strategy to offer comprehensive financial solutions to its growing user base.
Collaborative Efforts in the Fintech Sector
This initiative reflects a broader trend where small finance banks are partnering with fintech companies to provide innovative financial products like high-interest savings accounts and fixed deposits on digital platforms. Such collaborations leverage technology to make financial services more accessible and convenient for users.
The introduction of FDs on Google Pay represents a strategic step towards enhancing its offerings and strengthening its position as a leading digital payment and financial services provider in India’s evolving fintech landscape.
