New Delhi: The National Payments Corporation of India (NPCI) is preparing to introduce an option that will allow users to convert their Unified Payments Interface (UPI) transactions into Equated Monthly Installments (EMIs). The move is aimed at broadening credit access through UPI, particularly for high-value payments in sectors such as e-commerce, retail, healthcare, and travel.
NPCI has already enabled RuPay credit cards on UPI and launched the Credit Line on UPI, both of which have gained traction in recent months. The proposed EMI-on-UPI feature is expected to work through fintech platforms and banking applications, enabling users to split larger payments into smaller monthly installments without relying on traditional card-based EMI options.
The development comes as UPI transactions reached 20.01 billion in August 2025, a 2.8% rise from July. This growth underscores the increasing adoption of UPI not only in metropolitan cities but also in tier-2 and smaller urban centers. Industry observers say that linking EMIs with UPI could strengthen financial inclusion by bringing flexible repayment options to a wider set of users who may not have access to conventional credit products.
For lenders, fintech companies, and banks, the feature could create new avenues for offering structured credit, while merchants may benefit from improved purchasing power among consumers. The initiative also aligns with India’s broader strategy of using digital payments infrastructure to support credit expansion and reduce dependence on cash transactions.
If rolled out smoothly, the EMI-on-UPI feature may redefine the role of UPI from being a payments platform to serving as an integrated channel for both transactions and credit delivery, reflecting a growing convergence between digital payments and digital lending in India.
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