Synopsis: YES Bank collaborates with Vegapay to launch 'Credit Line on UPI.' The platform provides customizable credit solutions, bridging the credit gap in India. Aims to extend formal credit access to millions of underserved users. UPI-linked credit products are projected to exceed $50 billion by 2025.
YES Bank, a leading private financial institution, has partnered with Vegapay, a pioneering banking software technology provider, to unveil an innovative platform named 'Credit Line on UPI'.
This cutting-edge solution is designed to offer seamless and customizable credit options to millions of customers via India’s Unified Payments Interface (UPI).
The platform empowers YES Bank to create tailored credit programs, addressing individual customer needs.
With options to offer interest-free or interest-bearing credit, facilitate installment payments (EMIs), and configure specific lending rules, the platform promises flexibility.
Its user-friendly dashboard and customizable app ensure smooth integration with existing banking systems.
Bridging the Credit Divide:
Speaking on the initiative, Rajan Pental, Executive Director at YES Bank, highlighted the significance of UPI in reshaping India's digital payment landscape.
"UPI has revolutionized digital payments, but the challenge of extending formal credit to a broader audience persists. With 'Credit Line on UPI,' we aim to bridge this gap and support a credit-driven future for millions," said Pental.
Currently, only 15–20% of India's digital users hold credit cards.
By leveraging UPI’s extensive reach of over 350 million active users and 14 billion monthly transactions, the partnership seeks to address this disparity, unlocking greater financial inclusion.
A Market on the Rise:
UPI transactions are projected to grow at an annual rate of 57% through FY 2024, with the market for UPI-linked credit solutions expected to exceed $50 billion by 2025.
YES Bank’s partnership with Vegapay positions the institution to tap into this burgeoning market.
According to Gaurav Mittal, Co-founder and CEO of Vegapay, "Our platform's scalability and rapid deployment capabilities allow financial institutions to launch credit solutions within weeks. This ensures access to credit for underserved communities and keeps pace with the high transaction volumes of UPI."
Industry Backing:
Nalin Bansal, Chief of Fintechs at NPCI, expressed optimism about the collaboration.
He emphasized how Vegapay's technological edge and YES Bank’s extensive reach can drive financial inclusion for both existing and new credit-seeking customers.
Redefining Credit Access:
The partnership aims to redefine credit access across India by equipping banking institutions with modern, flexible tools to meet the growing demand for UPI-linked credit offerings.
The initiative reflects YES Bank's leadership in digital innovation, processing one in three digital transactions in India.
In conclusion, the partnership between YES Bank and Vegapay represents a significant milestone in India’s journey toward financial inclusion. By leveraging the ubiquitous UPI platform, this initiative not only addresses the existing credit gap but also sets the stage for future innovations in digital finance. With projections of rapid market growth, 'Credit Line on UPI' is poised to revolutionize credit accessibility for millions of Indians, fostering a more inclusive and credit-driven economy.
Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice. Readers are encouraged to consult with a financial advisor before making any financial decisions.
