New Delhi: NPCI developing EMI conversion for UPI transactions
The National Payments Corporation of India (NPCI) is reportedly planning a feature that will allow users to convert their UPI payments into Equated Monthly Instalments (EMIs). The initiative aims to expand digital credit adoption and make UPI payments more flexible for consumers.
How the feature will work
The EMI conversion feature will work similarly to converting card payments into EMIs at point-of-sale terminals. Users will be able to choose an EMI option at the time of making UPI payments for purchases, splitting the transaction into monthly instalments.
Fintech integration
NPCI intends to allow fintech companies to integrate the EMI option into their apps, enabling consumers to select EMIs for UPI transactions seamlessly. This step is part of NPCI’s broader strategy to increase credit-based transactions within the UPI ecosystem.
Potential impact on digital credit
The introduction of EMI options on UPI is expected to boost growth in India’s retail digital payments ecosystem. By offering instant credit, the feature can enhance consumer convenience, increase purchasing power, and expand access to digital credit, especially for high-value purchases.
Conclusion
The UPI-to-EMI feature could mark a significant milestone in India’s digital payments landscape, combining the ease of UPI with the flexibility of credit. Once implemented, it may encourage greater adoption of UPI for larger transactions and further strengthen India’s digital finance infrastructure.