Fintech companies in India are shifting their focus from digital payments to the underserved credit market, with expectations that digital credit will surpass the payment market in size.
Key takeaway
Indian fintechs (PhonePe, Google Pay, Paytm, etc.) are pivoting from payments to digital credit, targeting the underserved lending market.
- Step 1 · The triggerIndian fintechs pivot from payments to digital credit, expanding lending products to underserved SMEs and consumers
- Step 2 · Knock-onincreased formal credit supply intensifies competition among lenders and platforms in India
- Step 3 · Knock-onglobal fintechs and US platforms observe the Indian model's success, accelerating similar credit innovations in the US market
- Step 4 · Reaches youUS SMEs see new digital lending options, increasing access and potentially lowering borrowing costs
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: CNBC
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