NPCI Eyes UPI EMI Payments: Revolutionary Credit Feature Coming Soon

India’s digital payment ecosystem is about to witness another groundbreaking transformation. The National Payments Corporation of India (NPCI) is exploring the introduction of EMI functionality on UPI payments, allowing users to convert their instant payments into convenient installments.

UPI EMI Payments: Game-Changing Credit Innovation

This new feature will enable customers to convert any UPI payment into an EMI at the time of transaction, revolutionizing how Indians access credit for everyday purchases. The move builds upon NPCI’s existing credit products including RuPay credit cards and Credit Line on UPI.

Key Features & Benefits

Market Impact and Growth Potential

The EMI feature launch is expected to drive UPI’s next growth phase, helping NPCI move closer to its target of 100 billion monthly transactions. With UPI transactions already reaching record highs, this credit enhancement could significantly boost digital payment adoption.

The timing couldn’t be better. UPI transactions grew 2.8% month-on-month to 20.01 billion in August 2024, demonstrating the platform’s robust momentum.

Implementation Timeline

NPCI has previously mandated UPI members to implement credit account enhancements by May 31, 2024, indicating the organization’s commitment to expanding UPI’s credit capabilities. The EMI feature represents the next logical step in this evolution.

This development aligns with NPCI’s broader vision of making Credit Line on UPI more accessible. The existing credit line product already empowers individuals and small businesses with pre-sanctioned credit lines for immediate UPI transactions.

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