NPCI Working On A New Feature That Will Convert Your UPI Payments To EMIs, All You Need To Know

The

way Indians use UPI payments is going to change a little in the coming days. According to a report by Economic Times, the National Payments Corporation of India (NPCI) is working on a feature that will allow users to convert their UPI payments into EMIs. The step is being taken to increase the adoption of credit-based products in the country. The report mentioned that NPCI is working with the fintech companies to add an EMI payment feature that will let the customers convert their UPI transactions directly into EMIs.

How The Feature Will Work?

The feature will work identically to how people make credit card payments at PoS terminals, where a swipe is directly converted into EMIs. NPCI is motivated to drop the feature after the successful run of the RuPay credit cards and credit lines on the UPI interface. Multiple banks have already partnered with fintech companies like Paytm and Navi to offer UPI users access to the mentioned credit lines. Fintech founders say that the credit on UPI welcomes new revenue opportunities. Apart from that, it is being said that UPI will create its own credit ecosystem, which will give a boost to credit adoption for all the customers who don't possess a credit card. As for the current stats, the Unified Payment Interface or UPI manages about 20 billion transactions per month and has an active user base of 250 to 300 million users. From a user's point of view, the system will definitely change the psychology of a majority by making large-scale purchases easier. Another major benefit of the same will be seamless financing. The feature could also work as a boon for the users who live in tier 2 and tier 3 cities who lack a credit line.