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Google Pay could offer fixed deposits on app, investors to get up to 6.35% interest: Report
Google Pay will offer fixed deposits (FD) services provided by the Equitas Small Finance Bank.
Highlights
- The FD investments will come with a maximum maturity period of one year.
- Google Pay is likely to offer a maximum interest rate of up to 6.35% to investors.
- Ujjivan Small Finance Bank and AU Small Finance Bank could also offer FD services with Setu’s API.
New Delhi: Google appears to be all set to let Google Pay users invest in fixed deposits (FDs) on the fintech app. The tech giant has reportedly partnered with financial services API provider, Setu, to allow users open FD accounts in just a few clicks.
Initially, Google Pay will offer fixed deposits (FD) services provided by the Equitas Small Finance Bank, according to a Mint report. The FD investments will come with a maximum maturity period of one year.
Google Pay is likely to offer a maximum interest rate of up to 6.35% to investors as returns on their FDs. However, investors will have to comply with the Aadhaar-based know your customer (KYC) compliance to invest in FDs that are likely to be offered by Google Pay in the coming time.
Fintech API provider Setu has reportedly developed the beta version of the API that will be integrated within the Google Pay ecosystem. The report suggested that Ujjivan Small Finance Bank and AU Small Finance Bank could also offer FD services with Setu’s API.
Moreover, other payment apps such as Paytm or PhonePe could also use Setu’s API services to offer FD services. Also Read: Aadhaar new service: Here’s how to find out all mobile numbers linked to your Aadhaar card
At present, the beta version of Setu’s API offers FDs with different maturity time periods. The annual interest that you will be able to earn also ranges from as little as 3.5% for the shortest FD of 7-29 days and as high as 6.35% for FD maturing in one year. Also Read: Yahoo News, Yahoo Cricket, Finance, Entertainment and MAKERS news sites shut down in India with immediate effect