Industry experts say UPI’s instant, low-cost, and convenient payment infrastructure is transforming debt recovery by enabling 24/7 payments via apps and QR codes.
Rishabh Goel, Co-founder and CEO of Credgenics, explains that this shift is driving improved repayment compliance by 20–30%.
India’s consumer debt, including over ₹18 lakh crore in personal loans per Reserve Bank of India data, has grown steadily amid economic recovery. Yet, it is the adoption of UPI-powered collections combined with generative AI technologies—providing personalized reminders and repayment options—that is revolutionizing how repayments are made.
Credgenics’ UPI Collect service, in partnership with PhonePe, allows borrowers to receive notifications and make one-click repayments directly within the app, facilitating smoother collections and enabling self-service dispute resolution and partial payments.
This transformation in debt recovery comes as India’s broader UPI ecosystem continues to reach new milestones. In July 2025, UPI recorded a record 19.47 billion transactions worth ₹25.08 lakh crore, up from 18.39 billion transactions valued at ₹24.03 lakh crore in June.
Person-to-merchant (P2M) payments dominated with 12.38 billion transactions, accounting for 63.63% of the total volume, while person-to-person (P2P) payments made up the remainder.
