Mumbai: New-age banking technology provider Zeta has partnered with HDFC Bank to provide its Credit Line on UPI offering. The Credit Line on UPI (CLOU), which was launched last year, enables banks to link pre-approved credit lines directly to a user’s UPI account, facilitating payments through this credit facility.
When making a purchase, users can select the linked credit line as their payment method via UPI. Interest is charged only on the utilized amount, with repayment terms similar to those of a credit card. The partnership will utilize Zeta’s Digital Credit as a Service (DCaaS) solution to help HDFC Bank launch credit products on NPCI’s CLOU scheme, which Zeta estimates could become a $1 trillion opportunity by 2030. “Our association with Zeta includes working together on PayZapp, the Bank’s payment app, the acceptance of which continues to grow at a very rapid pace,” said Rajnish Prabhu, Senior Executive Vice President of HDFC Bank.
Zeta’s DCaaS is a fully managed, ready-to-deploy solution that supports rapid launches of credit products within six months, offering a catalog of over a dozen products for retail and SME lending. Zeta will provide HDFC Bank with a comprehensive technology stack and managed services, including consulting, engineering, operations, and customer support.
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