Google Pay’s New Venture: Fixed Deposits Integration

Reports suggest that Google Pay is venturing into the realm of fixed deposits (FDs) on its platform through collaboration with fintech startup Setu. Setu, known for its application programming interface (API) infrastructure, offers a range of APIs covering bill payments, savings, credit, and payments.

Partnering with Small Finance Banks

Initially, Google Pay plans to offer FDs from small finance banks such as Equitas Small Finance Bank, with Ujjivan Small Finance Bank and AU Small Finance Bank also slated to join the lineup, as per a report by Mint. This move aims to diversify the financial offerings available to users on the digital payment platform.

Aadhaar-Based KYC Process

To access these FDs, users will need to undergo an Aadhaar-based KYC (know your customer) process, facilitated through a one-time password (OTP). This streamlined verification process ensures compliance with regulatory requirements while enabling users to seamlessly access financial products offered on the platform.

Flexible FD Options

Setu has developed a testing version on the platform, offering a range of FD options with varying tenors. These options include FDs spanning 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and a one-year tenure. Interest rates for these FDs range from 3.5% for shorter durations to 6.35% for the one-year FD, catering to the diverse needs of users seeking investment opportunities.

Expanding Financial Inclusion

With approximately 150 million monthly active users in India, Google Pay’s foray into offering FDs reflects its commitment to expanding financial inclusion and empowering users with access to a broader range of financial products and services. By leveraging partnerships with small finance banks and fintech companies, Google Pay aims to enhance the financial well-being of its user base.

Collaboration with Fintech and Banking Partners

The collaboration between small finance banks and fintech companies underscores the growing trend of strategic partnerships within the fintech ecosystem. Small finance banks, recognizing the potential of digital platforms like Google Pay, are leveraging these partnerships to offer competitive interest rates and financial products to a wider audience.

In conclusion, Google Pay’s initiative to integrate FDs on its platform marks a significant step towards democratizing access to financial services in India. Through partnerships with fintech startups and small finance banks, Google Pay is poised to cater to the diverse financial needs of its user base, fostering greater financial inclusion and empowerment.