Google Pay, in collaboration with DMI Finance and ePayLater, has launched sachet loans in India aimed at small businesses. These loans start at INR 15,000 (approximately $200), with repayments starting from Rs. 111 (around $1.50). The move is designed to provide merchants with credit lines for their working capital needs, enabling them to purchase from both online and offline distributors, as announced on Thursday.
In addition to the sachet loans, Google Pay is expanding its banking partnerships in the country. The digital payments platform has forged collaborations with Axis Bank for individual loans and ICICI Bank for Unified Payments Interface (NASDAQ:TILE) (UPI) credit lines. It's also supporting the Rupay card network through a partnership with HDFC Bank.
Ambarish Kenghe, VP of Google Pay, revealed these initiatives at the 9th edition of Google for India. He also disclosed that Google Pay processed Rs. 167 lakh crore (approximately $2.23 trillion) worth of UPI transactions last year. Currently the second most popular UPI app in India, Google Pay facilitates nearly four billion transactions each month.
The introduction of sachet loans and the expansion of banking partnerships are part of Google Pay's strategy to foster a user-friendly financial environment on its platform. By increasing accessibility and flexibility for users, the company aims to further strengthen its position in India's digital payments sector.
Google's parent company, Alphabet Inc. (NASDAQ:GOOGL), has a market cap of $1750.0B and a P/E ratio of 29.57, according to InvestingPro's real-time metrics. In the last twelve months leading up to the second quarter of 2023, the company generated revenue of $289.53B. Despite a slight slowdown in revenue growth, it still managed to record a growth rate of 4.1%. The company's gross profit for the same period was $160.96B, representing a gross profit margin of 55.59%.
InvestingPro Tips reveal that Alphabet Inc. holds more cash than debt on its balance sheet, a promising sign for investors. The company has also shown a high return on assets, another positive indication of its financial health. It's worth noting that the company's stock is trading near its 52-week high and at a high Price / Book multiple of 6.58.
These financial figures, coupled with Google Pay's ongoing initiatives in India, underline Alphabet Inc.'s robust financial position and its commitment to expanding its digital payment services. For more insights and tips, visit the InvestingPro platform, which offers 17 additional tips for Alphabet Inc. and other companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.