PhonePe has started making deeper inroads into the country’s financial services market, which is expected to touch around $340 billion in the next few years.
PhonePe said it has launched a new savings product ‘Liquid Fund’ on its app.
The company said the ‘all-digital’ product will help over 175 million PhonePe’s users grow their savings by earning higher short-term fixed deposit (FD)-like returns with ease. They will also see liquidity of a savings account.
The Bengaluru-based firm is competing with rivals Alibaba-backed Paytm, Google Pay and Amazon Pay, which are also eyeing the financial services market in the country.
“Our strategy around financial services is around figuring out segments where we want to drive penetration. It can be done by educating customers and investing deeply into the products which are very simple and easy for the customers to understand and are (customised) for them,” said Hemant Gala, head of payments, banking and financial services at PhonePe.
He added, “We are also creating a simple onboarding procedure. The customers find it intimidating if there are too many processes and forms.”
Liquid Fund is PhonePe’s second product in the mutual funds space after ‘Tax Saving Funds’ unveiled last year, where it has created a completely digital investment flow for its users. “Liquid Fund will allow millions of our users to earn higher returns on their savings with the ability to withdraw their money instantly 24×7,” said Terence Lucien, head of mutual funds, PhonePe.