Google Pay to allow users to open fixed deposits on its platform

American tech giant Google has recently partnered with fintech startup Setu to let users open fixed deposits (FDs) through the digital wallet platform Google Pay.

According to Mashable, Google Pay will initially offer its users FDs of Equitas Small Finance Bank for up to one year.

Ujjivan Small Finance Bank and AU Small Finance Bank are also expected to join the list soon.

Reportedly, the maximum interest rate is currently set at 6.35 per cent and users would be required to sign up following an Aadhaar-based KYC (know your customer) process, enabled through a one-time password (OTP).

Fintech startup Setu is an application programming interface (API) start-up. It offers APIs to clients across bill payments, savings, credit, and payments.

As per Mashable, the company has already created a testing version on the platform that offers various tenors for FDs.

These include time periods ranging from 7-29 days, 30-45 days, 46-90 days, 91-180 days, 181-364 days, and 365 days, with interest rates that scale from 3.5 per cent for the shortest FD to 6.35 per cent for the annual FD.

Google India has not confirmed the development yet and an official launch date for the new feature on Google Pay is also kept under wraps.