Slice, the consumer payments and credit startup, unveiled its UPI-centric prepaid account on Monday. Following a successful three-month beta testing period, initially accessible to existing users, Slice is now rolling out the account services to all users, as stated by the fintech firm backed by Tiger Global.
The UPI-first account introduces a UPI handle (@slice) and a virtual prepaid account. Users have the flexibility to deposit money into the virtual account and make expenditures via UPI or card. They can also link the account to other bank accounts.
Additionally, the account features autoload functionality, ensuring smooth transactions and the automatic handling of recurring payments, according to the company. With autoload, customers can establish a limit, and if the account balance falls below that limit, it will automatically load the wallet.
To incentivize users to adopt this feature, Slice is providing enticing cashback. The startup obtained definitive approval from the RBI for its Prepaid Payment Instrument (PPI) license in September 2023, building upon the initial in-principle approval granted in October 2022.
In March of the previous year, Slice acquired a 5% stake in North East Small Finance Bank and later obtained regulatory approval for the merger with the bank. Currently, the company has sought approval for the merger from the relevant authorities. If the merger is approved, Slice has the potential to transform the existing prepaid accounts into comprehensive banking accounts within the newly established small finance bank.
The funding will be directed towards the newly created entity resulting from the merger of Slice and North East Small Finance Bank. As part of the agreement, Slice’s non-banking finance company will merge with the small finance bank. The other entities of Slice will discontinue their operations, according to sources familiar with the matter.