PayU, NPCI to introduce Credit Line on UPI feature for merchants

Online payment solutions provider PayU has joined hands with the National Payments Corporation of India (NPCI) to introduce the 'Credit Lines on UPI' feature on its platform. The integration of this feature within the PayU application now allows merchants to accept digital payments through Credit Lines, opening up avenues for enhanced financial security and growth.

A Credit Line on UPI refers to a pre-approved credit line or loan provided by a bank. Customers can utilise this facility when they lack the necessary balance in their linked accounts or wallets.

With over 380 million UPI users gaining simplified access to Credit Lines, the next significant wave in digital payments is anticipated to come from credit transactions. The provision of pre-approved Credit Lines by banks through UPI is expected to empower both businesses and consumers, aligning with India's agenda for financial inclusion. PayU's seamless incorporation of this financial offering signifies a substantial stride in its commitment to supporting expanding businesses and reshaping the landscape of digital payments.

Swaroop Kulkarni, Vice President, Products, PayU, expressed enthusiasm about being at the forefront of this transformative initiative. He stated, "Our collaboration with NPCI to accept pre-sanctioned Credit Lines on UPI underscores our commitment to delivering innovative solutions to our merchants and providing financial flexibility to our consumers. We will continue to collaborate with ecosystem enablers to democratize credit access in India and focus on developing tailored products for our stakeholders."

To enhance innovation in this integration and empower merchants, regardless of their size, with valuable digital payment insights, PayU plans to share information about relevant identifiers related to the type of credit the consumer has undertaken, such as pay-later options or personal loans. This data can be leveraged by merchants to formulate strategic growth strategies and create personalized products, ultimately enhancing the overall customer experience.

India witnessed a significant surge in Unified Payments Interface (UPI) transactions during the fiscal year 2022-23. The volume of transactions escalated from ₹92 crore in FY 2017-18 to ₹8,375 crore, showcasing a compound annual growth rate (CAGR) of 147%. UPI has emerged as a prominent player in India's digital payment industry, constituting 62% of all digital payment transactions in FY 2022-23.