ICICI Bank will withdraw its PayLater facility, a UPI-based credit line, from May 8, 2025. Current customers must repay their outstanding before the due date to avoid late fees. If you have Auto Pay services linked with PayLater like subscription to OTT platforms or bills for utilities, please update your payment mode to avoid disruptions.
What is PayLater
PayLater is a UPI-based credit facility. It lets users purchase something on a short-term loan and pay later. It worked like a credit card but was accessed via digital means like iMobile Pay or internet banking. ICICI Bank launched the service after the Reserve Bank of India allowed banks to provide credit on UPI in 2023.
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Why is this significant
They may have also use PayLater to set up Auto Pay directives for bills, online memberships, and other repeated payments. Once the feature is turned off, these Auto Pay transactions won't be made. Thus, customers must transition to an alternative payment schedule before May 8 to avoid falling behind on payments or being charged.
What the bank said
According to ICICI Bank, the service is being discontinued due to amendments in internal policy. The bank asked customers to repay the full outstanding balance before the payment due date mentioned on their monthly statement. It also informed that Auto Pay transactions based on PayLater accounts won't be honoured after the service is closed.
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Customers who pay all their dues in time will not be impacted by their credit scores. Late payment, however, might incur charges and influence credit history.
What should customers do now
If you are a customer of ICICI Bank's PayLater facility, check your pending dues and make sure you repay them by the specified due date. Further, payment modes for any services utilised on PayLater should be rechecked, which otherwise will be disrupted post-May 8.
ICICI Bank has also released answers to the most common questions to guide its customers.
FAQs
What is ICICI Bank's PayLater facility?
PayLater is a credit line on UPI offered by ICICI Bank. It allows customers to pay using borrowed money and pay back later. You may view your eligibility within the 'Get Instant Loans/Offers' tab of the iMobile app or within the 'Offers' tab in Net Banking.
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Why is ICICI Bank discontinuing PayLater?
The bank is closing down the facility due to changes in its internal guidelines. The facility will be closed on May 8, 2025, at 11:59 PM.
What will be done with my pending dues?
All pending dues need to be paid as per your repayment plan. You can repay via Auto Debit, iMobile app or Net Banking. If the repayment is delayed, there will be a charge or a penalty as per the then-existing terms and conditions.
What will be done with Auto Pay linked with PayLater?
Auto Pay commands placed via PayLater will be deactivated after May 8. To avoid missing payments, switch your payment source in advance.
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Will this affect my credit score?
Your credit score will not be affected if you settle all your dues in time. In case of missing payments, though, it can harm your credit history.
What to do next
Pay off any pending dues and change the payment mode for services linked with PayLater. This will prevent you from incurring penalties and affecting your credit score.
