Google Pay ties up with fintech to let its users open FDs on its platform

Google Pay has teamed up with fintech company ‘Setu’ and is now going to let its users open fixed deposits (FDs) on its platform.

Notably, Setu is an application programming interface (API) infrastructure start-up, which offers APIs across bill payments, savings, credit, and payments. Users will be able to open FDs through Google Pay or GPay even if they don’t have an account in the offering bank. Aadhaar-based KYC (know your customer) will be mandatory for users to open the FDs, the report said.

The FDs will be offered for a period of one year, with a maximum interest rate of 6.35 percent. The beta version of the API offers FDs of various tenors including 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and 365 days. The interest rates range from 3.5 percent for the shortest FD to 6.35 percent for the one-year FD. However, till now Google India has not confirmed the development and an official launch date in India of this scheme.