Google Pay to let users open fixed deposits on its platform

GooglePay is reportedly working on offering fixed deposits (FDs) on its platform with the help of a fintech startup Setu.

Setu is an application programming interface (API) infrastructure start-up, which offers APIs across bill payments, savings, credit, and payments.

Initially, the digital payment platform will offer FDs of small finance banks like Equitas Small Finance Bank. Ujjivan Small Finance Bank and AU Small Finance Bank, are also in the pipeline, said a report by Mint.

For this, users will have to complete an Aadhaar-based KYC (know your customer) through a one-time password (OTP).

Setu has already created a testing version on the platform that offers various tenors for FDs including 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and 365 days, with interest rates ranging from 3.5% for the shortest FD to 6.35% for the one-year FD. According to media reports, Google Pay has 150 million monthly active users in India.

Small finance banks have reportedly teamed up with several fintech companies to offer high interest savings accounts and fixed deposits on its platforms.