NPCI to Allow Users to Convert UPI Payments into EMIs at the Point of Sale, Aiming Next-Level Digital Payments Growth Around Credit Products

The National Payments Corporation of India (NPCI) is now working on rolling out a new credit feature by allowing users to convert UPI payments into EMIs at the point of sale. This will follow the RuPay credit card and credit line features that were previously introduced on UPI, and the new UPI payment to EMI functionality will be aiming at the next-level of digital payments growth around credit products.

Here’s more about the update.

NPCI to Bring Out the UPI Payment to EMI Conversion Functionality Soon

As mentioned, after the RuPay credit card for UPI (introduced in 2022) and the credit line on UPI (introduced in 2023), it has now been reported that NPCI is currently working on a new credit feature which will allow users to convert UPI payments into EMI. It will be similar to how users convert a credit card swipe to EMI at point of sale (PoS) terminals, and NPCI will soon be enabling fintech brands to integrate the feature on their services/apps.

In related news, Navi CEO Rajiv Naresh stated – ‘Today, we are not yet live with EMI, but the next version – which NPCI has permitted via its product guidelines – will allow the consumer, at the point of scanning the QR code (subject to certain terms and conditions), to split payments into EMIs’.

Also, while fintech brands won’t be able to generate revenue through payments made via savings accounts as the government holds a zero fee mandate over RuPay debit cards and UPI payments, credit payments on UPI will allow them to gain revenue. Notably, it is also being said that NPCI is planning to impose about 1.5% interchange fee on credit line and this means, the same opportunity will be provided to fintech brands for the UPI payment to EMI conversion functionality as well.

Stay tuned for more updates.