New Delhi: Google Pay users appear to be on the verge of being able to invest in fixed deposits (FDs) via the fintech app. According to reports, the tech behemoth has teamed up with financial services API provider Setu to allow users to open FD accounts in just a few clicks.
According to a Mint report, Google Pay will initially offer fixed deposits (FD) services provided by the Equitas Small Finance Bank. The maximum maturity period for FD investments will be one year.
Google Pay is likely to offer investors a maximum interest rate of up to 6.35 percent as a return on their FDs.
To invest in FDs that are likely to be offered by Google Pay in the future, investors will need to comply with Aadhaar-based know your customer (KYC) compliance.
Setu, a fintech API provider, is said to have created a beta version of the API that will be integrated into the Google Pay ecosystem. According to the report, Ujjivan Small Finance Bank and AU Small Finance Bank could also offer FD services using Setu’s API.
Furthermore, other payment apps such as Paytm or PhonePe may use Setu’s API services to provide FD services.
At the moment, the beta version of Setu’s API offers FDs with varying maturity times. The annual interest rate that you can earn ranges from as little as 3.5 percent for the shortest FD maturing in 7-29 days to as much as 6.35 percent for FD maturing in one year.