Yes Bank has partnered with Vegapay, a leading technology provider in banking software, to launch a hyper-configurable platform called Credit Line on UPI, according to a press release by Vegapay. This platform enables Yes Bank to create tailored credit programs to meet diverse customer needs. Through the platform, the bank can decide whether to offer interest-free or interest-bearing credit, allow installment payments (EMIs), and establish rules for different scenarios using an intuitive interface.
The solution includes a customizable app and a user-friendly dashboard, simplifying integration with existing banking systems. Rajan Pental, Executive Director of Yes Bank, commented on the initiative, stating, “UPI has transformed digital payments in India, but there is still a gap in providing formal credit access to a broader audience. Yes Bank processes one in every three digital payment transactions in India, reinforcing its leadership in the UPI ecosystem. With Credit Line on UPI, we aim to bridge this gap and enable a credit-driven future for millions of Indians. Our partnership with Vegapay provides us with a robust platform that meets security and compliance standards while delivering seamless credit solutions.”
The collaboration seeks to redefine credit access in India, empowering banks to deliver modern credit experiences to millions of customers.
UPI has become the backbone of India’s digital payments ecosystem, with over 350 million active users and more than 14 billion monthly transactions. Despite this growth, formal credit access remains limited, with only 15-20% of users owning credit cards. As UPI transactions are projected to grow at an annual rate of 57% through FY 2024, the market for UPI-linked credit products is expected to exceed $50 billion by 2025.
By leveraging UPI’s extensive reach, the partnership between Yes Bank and Vegapay aims to address this gap, offering flexible and accessible credit solutions. Nalin Bansal, Chief of Fintechs, Corporates, and Key Initiatives at NPCI, praised the collaboration, highlighting Vegapay’s swift execution and technological innovation. He stated, “Vegapay’s Credit Line on UPI platform, launched through the NPCI Partner Program, sets a benchmark for the industry. This seamless partnership between Yes Bank and Vegapay will drive financial inclusion and enhance the credit experience for both existing and new banking customers.”
The move underscores a growing trend among leading banks like Yes Bank to explore UPI-linked credit offerings, responding to the rising demand for flexible, modern financial solutions.