No more UPI credit: ICICI Bank discontinues PayLater facility for all users

ICICI Bank has terminated its PayLater credit line service on the Unified Payment Interface (UPI) for all customers as of 8th May 2025. This decision marks the end of a service introduced in September 2023, which allowed users to make purchases with deferred payment options through UPI. The announcement was made via a flash notification on the bank's iMobile app and was also posted on its website, informing customers of the immediate halt in service.

The discontinuation affects all users, regardless of their usage frequency or credit history. Customers will no longer be able to make transactions using PayLater on UPI platforms, including iMobile Pay and other third-party UPI applications. ICICI Bank has specified that the decision was made "as per internal policy," without citing any external regulatory reasons for the cessation of the service.

Existing PayLater customers with outstanding dues must continue to repay their balances according to previously established timelines. The bank has assured that monthly statements will still be issued, allowing users to track their dues and ensure timely payments. The repayment of these dues can be facilitated through iMobile Pay or Internet Banking using linked savings accounts or other pre-approved methods.

The closure of the PayLater service applies solely to UPI transactions. Other banking services offered by ICICI Bank, such as credit cards, savings accounts, and loans, remain unaffected. Customers are encouraged to check their PayLater accounts regularly to manage outstanding dues and avoid penalties.

ICICI Bank has advised customers who utilise Auto Pay for essential payments linked to PayLater accounts to switch their payment methods in advance to prevent disruptions, as these transactions will not be honoured post-closure. This precaution is vital to ensure continuity in essential services and prevent any unintended service interruptions.

For customers seeking clarity on the service's discontinuation, ICICI Bank has recommended reaching out through its digital platforms or visiting a branch for assistance. The bank is committed to providing support to those affected by this change, ensuring that all queries related to PayLater accounts are addressed promptly.

The termination of the PayLater service reflects an internal strategic decision by ICICI Bank, prompting customers to adjust their payment strategies accordingly. As the banking industry evolves, such changes highlight the dynamic nature of financial services and the importance of adapting to new policies and offerings.