New Delhi: NPST, a fintech firm specializing in UPI and digital banking, has partnered with embedded finance company Hyperface to enable instant credit access through UPI. The collaboration comes at a time when India’s credit card penetration remains low, with only 100 million credit cards in circulation compared to over 400 million UPI users.
Expanding Credit Access via UPI
The partnership aims to provide banks and credit issuers with the ability to offer UPI-based credit lines using existing infrastructure and customer data. This could help expand access to credit, particularly for consumers who do not have traditional credit cards. Eligible users will be able to access pre-approved credit at the point of sale and repay in installments, making credit more accessible and flexible.
Merchants are also expected to benefit from the initiative, as easier credit access could lead to higher sales, increased transaction values, and better customer retention.
Integrating UPI Switch Technology
NPST will integrate its UPI switch technology with Hyperface’s credit management platform, enabling banks to develop and deploy credit solutions directly linked to UPI. The modular system will support real-time customer risk assessment, compliance monitoring, and data insights, allowing financial institutions to scale credit offerings as per market demand.
Industry Perspective
Deepak Chand Thakur, Co-Founder and CEO of NPST, said the partnership aligns with the evolving needs of banks and consumers. “This collaboration allows banks to introduce digital-first credit solutions while driving transaction volumes and revenue growth.”
Ramanathan RV, Co-Founder and CEO of Hyperface, emphasized the demand for flexible credit solutions in the UPI ecosystem. “With changing financial requirements, our partnership with NPST will help banks rapidly develop and scale credit products tailored to different customer segments.”
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