Slice Small Finance Bank, a fintech startup, has entered the micro, small, and medium enterprises (MSME) and merchant lending markets, offering totally digital loans.

Slice’s foray into merchant payments and financing puts it in direct competition with Paytm, PhonePe, Google Pay, and BharatPe, among others.

The Bengaluru-based small financing bank has recently released the Slice Business app on the Google Play store. According to the Google Play Store listing, it offers businesses a digital current account, QR code, and UPI payment benefits for receiving consumer money in their Slice current account, as well as a UPI soundbox, similar to what Paytm and PhonePe provide.

Unlike most other company current accounts, Slice provides instant settlement, whereas other current accounts do it at the end of the day or the following day. Slice, unlike many of its fintech competitors, is a bank rather than a payment aggregator and hence has the capacity to do so.

In an effort to entice existing Paytm, PhonePe, and BharatPe merchant customers, the fintech company is also offering prizes based on payment acceptance and volume. Merchants can now open a zero-balance current account with Slice.

“The broader vision is to build a full-fledged digital bank. Merchant lending is a logical extension of that roadmap,” the source said.

Unlike Paytm and PhonePe, Slice is likely to lend primarily from its own books. Slice has an advantage over its competitors since it is a bank that can accept public deposits, which reduces the company’s funding costs and allows it to provide competitive interest rates.

Slice is offering up to Rs 5 lakh in fast digital loans with no collateral and a repayment term of up to 24 months.

Over the last year, Slice has also expanded its consumer segment by introducing digital savings accounts, UPI-enabled branches, UPI-linked credit cards, and UPI credit.

Slice achieved profitability in the first half of the current fiscal year, generating a net profit of Rs 7 crore. According to statistics from credit rating agency Crisil, it recorded total income of Rs 632 crore in the first half of FY 26, up from Rs 604 crore in the full fiscal year FY 25, indicating a 100% increase in income.

Discover the next big investment! Unicorn Signals’ IPO screener helps you identify promising initial public offerings. Download Unicorn Signals and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!