Fintech firm slice is planning to launch credit cards for merchants, according to a source aware of the development, as it looks to address a longstanding gap in access to formal credit for small businesses as the company looks to position itself as a digital bank like Brazil’s Nubank.
India’s business credit card market has traditionally been skewed towards large corporates and established firms with audited financials. For millions of small merchants and MSMEs, the absence of formal records and credit histories has kept them outside the ambit of such products. “For the tens of millions of small merchants… a business credit card has simply not been available,” a person familiar with the company’s plans said.
slice’s strategy hinges on using real-time transaction data generated through its Business App. Merchants operating current accounts and accepting payments on the platform create a continuous data trail—covering settlement cycles, revenue flows and seasonality—that allows for risk assessment. “That data makes underwriting possible where it previously wasn’t,” the person said, adding that the card is being built from the ground up for this segment.
The company’s transition into a bank following its merger with North East Small Finance Bank has shaped this approach. By lending from its own balance sheet, slice can price loans more competitively and build longer-term credit relationships. “The bank structure is not incidental to the product. It is the product,” another source said.
Slice did not respond to businessline queries on its expansion into merchant lending.
Since launching the Business App in November 2025, slice has processed around ₹6,000 crore in merchant payments and is onboarding merchants at an annualised pace of about 2 lakh. Monthly loan disbursements stood at ₹162 crore in March, with collateral-free loans of up to ₹10 lakh and tenures of up to 24 months.
“The friction that slice is removing is real, and merchants are responding to it,” a person familiar with the lending business said, pointing to features such as real-time settlements and instant account opening.
A crowded market, but a structural gap
With its push into merchant payments and lending, slice is competing with platforms such as Paytm, PhonePe, Google Pay and BharatPe, which largely operate as lending marketplaces.
In contrast, slice’s model is built on owning the full stack—from deposits to underwriting—giving it greater control over pricing and risk. Industry estimates by Redseer peg the total addressable market for prepaid cards at ₹4.9 trillion, though penetration remains low, highlighting the headroom for expansion in merchant-focused credit.
Separately, the Bengaluru-based company is in advanced stages of raising $80–100 million from investors including Accel, Elevation Capital and Peak XV Partners, as it looks to scale its merchant offerings and distribution.
Published on April 24, 2026