Fintech firm Zeta launches UPI-linked digital credit service for banks | Here’s how this will work

financialexpress.com:

Fintech platform Zeta has announced the launch of its ‘Digital Credit’ as a service offering.

Zeta’s offering is underpinned by the National Payments Corporation of India’s (NPCI) credit line on UPI scheme – which harnesses the power of the UPI network to turbo-charge credit issuance in India, Zeta said in a statement on Friday.

Zeta estimates that the transaction volume on this scheme will exceed $1 trillion by 2030 and aims to capture 50% of this market opportunity with its end-to-end solution that can help banks conceive and rapidly launch multi-form credit products.

“India’s financial landscape today presents a unique dichotomy. TransUnion CIBIL has reported that more than 160 million Indians remain underserved by traditional credit channels. At the same time, banks have pre-approved credit for millions of customers but are unable to distribute loans to them efficiently. Unlike traditional loans, credit products that leverage Credit Line on UPI offer on-demand access through any PSP payment app leveraging a fully digital-native experience, allowing consumers to borrow precisely how much they need, when they need it.”

Also Read: NRI customers of this private sector bank can now make UPI payments using international mobile numbers – Here’s how!

Calling the Credit Line on UPI ‘a credit distribution superhighway’, Ramki Gaddipati, CEO APAC and Global CTO, Zeta, said, “This is a once-in-a-generation opportunity to change the credit inclusion landscape in India. By delivering credit at the point of need, Credit Line on UPI has hit a home run for banks by completely changing the discovery, access, and cost mechanics of retail lending. We’re excited to enable banks to serve the credit needs of millions of customers in this