PayLater ICICI Bank

ICICI Bank has introduced a new facility known as PayLater to enable its customers to purchase small ticket items in a completely digital and paperless manner. This facility is an instant digital credit limit that helps customers to shop online, pay bills, and pay using the Merchant UPI ID at physical stores.

ICICI Bank has the distinction of being the first bank in India to offer such a small ticket digital lending mechanism in partnership with a leading Fintech firm last year. Now, it has extended this service on the UPI platform to connect to as many digitally-savvy customers as possible. 

ICICI Bank has always been a leader when it comes to introducing new products. The PayLater initiative is one such endeavour by the bank to consolidate its position in the small ticket digital credit market. This facility can prove useful to people to purchase products of their choice, especially during the festive season.

What is PayLater?

As the name suggests, you buy now and pay later. Select customers of ICICI Bank can get instant digital credit up to 20,000.

Target group

Young and millennial customers who love to do everything online including availing credit.


It is an 'invite-only' facility where it is instantly available to pre-approved and qualified customers.


Instant Digital Credit ranging from 5,000 up to 20,000


To enable customers to buy the products of their choice instantly both online and offline.


To ICICI Bank customers having internet banking, mobile banking, or Pockets Account facility.


  • Maximum 45 days interest-free period
  • If unpaid on the due date, the bank charges interest @3% per month on the amounts due from the Payment Due Date.


ICICI Bank generates a consolidated statement on the 1st of every month. The amount is payable by the 15th of the same month.

Mode of disbursement

Instant credit limit in the form of an overdraft on their savings account

Tenure of the limit

Initially, the limit is for 12 months subject to review and renewal after the expiry of the tenure.

Repayment mode

By setting up an auto-debit standing instruction at the time of applying for the limit.

EMI facility

Available on request at the bank's discretion

How to Activate PayLater in ICICI?

Internet Banking users, iMobile, and Pockets Wallet users can activate the PayLater facility when they receive an exclusive invite from ICICI Bank on their transaction platform.

 Internet Banking

  • Select customers get an invitation from ICICI Bank to activate the PayLater facility
  • This invitation is available when the customer logs into their internet banking account
  • On logging into the system, click on the 'My Accounts' tab on the top left-hand corner of the screen. Select the option, 'PayLater.'
  • The system automatically fills in the details available with the bank
  • Select your savings account number that you would like to link with PayLater facility
  • Go through the 'Terms and Conditions' and click on the checkbox to provide your consent for the Auto Debit facility.
  • Click on the Submit option
  • On creating your PayLater account, you will receive an online e-receipt page that displays the PayLater Limit and helps you with understanding the usage of the facility.
  • The next step is the creation of the PayLater UPI ID:
  • Log into your iMobile app and tap on the BHIM UPI option
  • Tap on the 'Manage' option and choose 'My Profile'
  • Create your new Virtual Payment Address (VPA)
  • Enter your desired prefix and check for its availability
  • Select your PayLater account from the drop-down list
  • Submit to receive a confirmation of the registration of the VPA.


  • If you receive an invitation to create a PayLater account, click on the pop-up to create the PayLater account. Alternatively, you can tap on the 'Remind Me Later' option.
  • Read the terms and conditions and click on the 'Got it' option
  • Go through your details such as name, address, date of birth, PAN, Aadhar number, mobile number, and email ID.
  • Select the debit account and agree to the conditions by submitting your details
  • Select the account where you would like to have the 'auto-debit' facility for repayment
  • Create your VPA
  • The process of creating your PayLater account is complete
  • View the details of your PayLater account in the Accounts and Deposits section

 Pockets App

  • On receiving the invitation, click on the 'Activate Now' pop-up to create your PayLater account
  • Click on 'Terms and Conditions' to get an idea about the facility. Check the box and click on 'Got it.'
  • Verify your details and select your debit account and proceed to select the checkbox and submit the application.
  • Set up your savings account for the 'auto-debit' facility
  • Create your VPA and complete the process of activating the PayLater account
  • Go to the Pockets dashboard to check up your PayLater account details

PayLater ICICI Eligibility

  • PayLater facility is available only through the ICICI Bank platform
  • Those customers found eligible as per the criteria, and credit assessment of the bank will get the PayLater account.
  • Select customers receive an invitation from ICICI Bank to sign up for the PayLater facility
  • The customer should have internet banking or iMobile facility or be using the Pockets Wallet app.
  • The selected customers receive a pre-approved limit ranging between 5,000 and 20,000

ICICI PayLater Account Charges

  • PayLater facility is available free of charge. There are no joining fees or annual fees for activating and using the facility.
  • PayLater customers get an interest-free credit period ranging from 15 days to 45 days, depending on the date of using the facility.
  • If the customer does not pay on the due date, ICICI Bank charges interest @3% per month (36% annually) on the unpaid amount.
  • Apart from the interest, there is a late payment fee

How to Transfer Money from ICICI PayLater Account?

  • The PayLater facility allows customers to purchase online from the ICICI Bank platform using your UPI.
  • PayLater facility is only available for merchant UPI ID transactions and not for payments to individual user UPI IDs.

How to Use PayLater ICICI?

  • On activating PayLater, you will get PayLater as a payment option while making online payments. It is similar to making payments using credit or debit cards and internet banking.
  • Select the PayLater option, and the system debits your credit line
  • ICICI Bank generates a statement on the 1st of every month detailing the usage of the PayLater account during the month.
  • Customers have 15 days to pay the amount. As you have given an auto-debit standing instruction at the time of availing the facility, the system debits your account automatically.
  • Customers have to maintain the required balance on the due date
  • If there is an insufficient balance, it is a default in payment. The Bank can charge interest @ 3% on the unpaid amount along with a fixed late payment fee.

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