In a ground-breaking partnership, Vegapay and Yes Bank are introducing a new way to access credit directly through UPI. This collaboration aims to make credit more accessible to millions of Indians, especially in a country where only a small percentage of the population has access to traditional credit cards.

A Game-Changing Partnership for Financial Inclusion

In a major move to expand credit access across India, Vegapay, an innovative banking software company, has teamed up with Yes Bank, one of India’s leading private-sector banks, to launch a ‘Credit Line on UPI’ platform.

This new solution leverages the Unified Payments Interface (UPI), which has already revolutionized the way people make payments in India. However, until now, UPI has not been widely used for credit. With over 350 million active UPI users and 14 billion monthly transactions, the UPI platform has immense potential to bridge the gap in access to credit. The new partnership seeks to tap into this vast user base and make formal credit solutions available to millions.

What is the Credit Line on UPI?

The Credit Line on UPI platform enables Yes Bank to offer a range of credit options directly through the UPI system. Whether users need interest-free credit, EMI-based repayments, or flexible payment options, this platform provides tailor-made solutions that can fit individual financial needs.

Rajan Pental, Executive Director at Yes Bank, explained the significance of the initiative: “UPI reshaped India’s digital payments landscape, but extending formal credit has remained a challenge. With this new offering, we aim to lead the way in creating a credit-driven future for millions of Indians.”

For the first time, users will be able to access instant credit through the same platform they use for everyday transactions, making the borrowing process easier and more accessible.

Addressing India’s Credit Gap

Despite the rapid growth of digital payments, India still faces a massive credit gap. Only 15-20% of Indians have access to credit cards, leaving a large portion of the population unable to access formal credit. This lack of access is a major hurdle for many who want to make larger purchases or manage their finances more effectively.

Vegapay’s new platform seeks to close this gap by making credit available to a wider audience. Since UPI is already widely adopted, the platform has the unique advantage of reaching new and existing bank customers without requiring them to sign up for traditional credit card services. This is a huge step towards financial inclusion in India.

How the Credit Line on UPI Works

The platform works by integrating seamlessly into existing UPI systems, allowing users to access credit lines with just a few clicks. The process is designed to be simple, intuitive, and fast, with the flexibility to customize credit offerings to meet the needs of individual users.

Banks can offer a variety of credit products, such as interest-free loans, flexible EMIs, and custom repayment terms, all through an easy-to-use interface. For users, the ability to get quick access to credit while managing payments through UPI makes it a convenient option that doesn’t require jumping through traditional banking hoops.

Gaurav Mittal, CEO of Vegapay, emphasized the platform’s potential: “This technology is scalable, and it can be implemented in weeks. It allows financial institutions to meet the growing demands of the market, supporting thousands of transactions per second, with minimal friction.”

The Future of Credit in India

The partnership between Vegapay and Yes Bank is poised to redefine how credit is accessed in India. UPI transactions are projected to grow by 57% annually through FY 2024, with UPI-linked credit products potentially exceeding $50 billion by 2025. This presents a massive opportunity to bring credit products to millions of underserved Indians and help them manage their financial needs in a more efficient way.

Nalin Bansal, Chief of Fintechs at NPCI, praised the partnership, saying, “This collaboration sets a new industry standard for UPI-based credit solutions. It’s a shining example of how UPI can be used for driving financial inclusion and making credit more accessible for everyone.”

Vegapay’s Vision for the Future

With this new platform, Vegapay and Yes Bank are not just offering a financial product—they are changing the way people think about credit in India. By integrating credit with UPI, they’re making it easier for people to access funds when they need them most, without the hassle of traditional banking procedures.

The partnership also highlights the growing role of fintech companies in reshaping India’s financial landscape. As India continues to embrace digital payments, the demand for innovative financial products that cater to the needs of the digital economy is expected to increase.

This is just the beginning of what could be a revolutionary shift in how credit is distributed and accessed in India. With Vegapay’s expertise in banking software and Yes Bank’s market presence, this partnership has the potential to scale and bring credit to millions of underserved customers, driving financial inclusion at an unprecedented pace.

Looking Ahead: A New Era for UPI and Credit in India

As India’s digital payments ecosystem continues to expand, Vegapay’s and Yes Bank’s innovative credit solutions are expected to play a major role in shaping the future of financial services. By tapping into the power of UPI, this partnership aims to make credit not just more accessible but also more inclusive—helping millions of Indians get the financial support they need.

Whether it’s for a small emergency purchase, a planned EMI payment, or a larger financial goal, the new Credit Line on UPI platform is designed to empower users with the tools they need to manage their money better.

Conclusion

The collaboration between Vegapay and Yes Bank represents a giant leap forward in making credit accessible to more Indians. By combining the power of UPI with flexible credit offerings, the partnership has the potential to transform financial inclusion in India, one transaction at a time.