Google to enable users to invest in FDs through Google Pay: Report

Google is collaborating with fintech company Setu, to bring this service to users, reported Mint citing people with the knowledge of the matter.

Setu is a fintech company specialising in providing APIs to allow its users to book fixed deposits through Google Pay, according to the report.

Initially, FDs of Equitas Small Finance Bank will be offered, up to a one year duration with a maximum interest of 6.35 per cent.

Users will have to complete an Aadhar based KYC through a one-time password (OTP).

A beta version for the API has been readied by Setu, the report said.

“The beauty of the system is that you can book an Equitas FD on Google Pay, even if you do not have a savings account in Equitas Small Finance Bank. The money will flow out of your existing account and back into your existing savings account. Other banks including Ujjivan Small Finance Bank and AU Small Finance Bank are also in the pipeline. If successful, the system will also extend to other payment apps," Mint quoted a source as saying.

"While attention is usually focused on mutual funds and stocks, it is FDs that are the largest component of savings in India. They are largely overlooked," he added.

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 as well as 365 days with interest rates ranging from 3.5 per cent for the shortest FD to 6.35 per cent for the one year FD of 365 days, the report stated.

Google Pay has 150 million monthly active users in India.