MC Explainer: What is the QR code-based EMI facility for UPI payments

UPI

On April 11, ICICI Bank announced an EMI facility for UPI payments made by scanning a QR code. According to the bank, customers eligible for PayLater, the bank’s digital credit card,  can avail of its ‘buy now, pay later’  EMI facility.

The facility can be availed across a host of categories such as electronics, groceries, apparel, travel, and hotel bookings. Customers can pay amounts above Rs 10,000 in instalments in three, six, or nine months.

Here’s an explainer to understand this in detail.

In response to the Reserve Bank of India (RBI) allowing banks to lend pre-approved credit through UPI,  ICICI Bank announced EMI facilities for UPI payments made through QR codes.

Customers who pay through ICICI Bank's PayLater service will have access to its ‘buy now, pay later’ EMI facility.

Provided you’re already a user of PayLater, to avail of the EMI facility you have to visit any physical store and choose your preferred product or service. To make the payment, use the iMobile Pay app and choose ‘Scan any QR’ option,  then select the PayLater EMI option. Next, select the tenure (three, six, or nine months), and simply confirm the payment, and the transaction would be completed successfully.

You can pay an amount above Rs 10,000 in three, six, or nine months. The EMI facility will shortly be extended to online shopping as well, the bank has said.

PayLater customers will have to pay Rs 500 plus GST as a one-time activation fee. Each Rs. 3,000 in monthly spends on PayLater will be subject to a service fee of Rs 75, plus applicable taxes.

The customer will be charged penal interest after the due date depending on the total amount owed. There will be a predetermined late payment fee applied to all bills until the debt is paid in full.