All PayLater credit line services on UPI have been formally discontinued by ICICI Bank. According to an update on its official website, the bank has now closed the facility, which was once a well-liked feature for customers wishing to make short-term purchases with a deferred payment option.

Key Highlights

• ICICI Bank discontinued its PayLater credit line on UPI, effective May 8, 2025.
• Customers must clear outstanding dues promptly; delayed payments may incur penalties and affect credit scores. 

Both online and offline retailers who previously used PayLater as a digital credit line for immediate UPI purchases are impacted by the change. Here is a thorough analysis of ICICI Bank's statements regarding this change and the actions that customers must take immediately.

Why was ICICI PayLater shut down?

The service has been discontinued "as per internal policy," according to the bank's PayLater page and frequently asked questions. There has been no mention of any particular external regulatory justification. 

All customers are impacted by the decision, according to ICICI Bank, regardless of how often they used the feature or how long they had a bank account.

How do customers who use it fare?

The bank has made clear what its clients can anticipate moving forward:

• No new transactions: PayLater users are no longer able to use it to pay with UPI, including through well-known third-party UPI apps like iMobile Pay.
• Remaining dues: Users who have unpaid PayLater balances are required to keep making payments. The standard payback schedules that were previously explained in monthly statements will still be in effect.
• Statement access is still available: According to ICICI Bank, monthly PayLater statements will continue to be sent out, enabling clients to monitor their obligations and make payments as needed.

How can users pay back past-due amounts?

Through its online channels, the bank has offered the following options for repayment:

• Consumers can check and settle their outstanding balances by logging into Internet Banking or iMobile Pay.
• In accordance with previous PayLater repayment guidelines, payments must be made using linked savings accounts or other authorized methods.

Which services are unaffected?

The lender explained that only UPI transactions are affected by the PayLater closure. Credit cards, savings accounts, and loans are among the other bank services that are unaffected.

Now, what should customers do?

• Use Internet Banking or the iMobile Pay app to check your PayLater account.
• To avoid penalties, pay off any outstanding balances by the deadline.
• Pay attention to any further correspondence from the bank about your PayLater account.

Customers who have more questions are encouraged to visit a branch or contact the bank via its online channels.