New Delhi, September 28: National Payments Corporation of India (NPCI) is reportedly focusing on expanding credit offerings within the Unified Payments Interface (UPI) network. The organisation is said to be exploring ways to provide customers with flexible payment options beyond the existing RuPay credit cards and credit lines on UPI. The next major update in UPI could allow users to convert their UPI payments into EMIs. NPCI is reportedly in discussions with fintech firms to integrate this feature, which would allow instant conversion of UPI transactions into instalments.

NPCI is expected to use it to strengthen credit-based transactions on UPI. A few banks have already partnered with fintechs like Navi and Paytm to provide credit lines on UPI. Recently, Paytm introduced its Postpaid service as a Credit Line on UPI with support from Suryoday Small Finance Bank and NPCI. The concept is similar to card payments at the PoS terminal, where customers can instantly convert swipes into EMIs. UPI Settlements Rules: PhonePe, Paytm and GPay Users Expected To Benefit From NPCI’s New Authorised and Dispute Cycle Effective From November 3.

Fintech founders see potential in credit payments through UPI because it can create a revenue stream. In contrast, transactions linked to savings accounts don’t bring in earnings, as merchants can’t be charged. It is due to the government’s zero-fee policy on RuPay debit cards and UPI transactions. UPI is reportedly handling around 20 billion transactions every month. The platform already has around 250–300 million active users. However, to scale further and include a wider range of payments, the focus is said to be on strengthening credit-based transactions. UPI P2M Payment Limits Increased: NPCI Raises Transaction Limits for Person-to-Merchant Transactions up to INR 10 Lakh for Specified Categories.

As per a report of The Economic Times, Navi CEO Rajiv Naresh said, “Today, we are not yet live with EMI, but the next version—which NPCI has permitted via its product guidelines—will allow the consumer, at the point of scanning the QR code (subject to certain terms and conditions), to split payments into EMIs.”

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