Navi has partnered with Karnataka Bank to launch a credit line feature on Unified Payments Interface (UPI). This initiative integrates a pre-approved credit line directly into the UPI, offering customers a seamless and convenient way to access credit.
The credit line on UPI feature, introduced by the National Payments Corporation of India (NPCI) last year, requires activation by the customer’s account-holding bank. Karnataka Bank is now enabling this feature for its customers registered on Navi. Initially, the service is available to a select group of users, with plans for a broader rollout based on user feedback.
UPI, which dominates the digital payments landscape in India with an 80 per cent share of all digital transactions, is set to become even more versatile with the introduction of credit line on UPI. This product allows users to access short-term monthly loans and, in the future, will expand to include other unsecured credit options such as EMI facilities and working capital credit lines.
Srikrishnan H, Managing Director (MD) and Chief Executive Officer (CEO), Karnataka Bank, emphasised on the importance of this collaboration, noting that the integration of credit lines into UPI will enhance accessibility and convenience for customers, offering a unique digital experience.
Navi has seen rapid growth on the UPI platform, doubling its transactions from 35.7 million in June to 68.5 million in July. The app is currently the sixth-largest UPI app, with the number of transactions skyrocketing 22-fold in just four months.
Sachin Bansal, Managing Director and CEO, Navi Technologies, highlighted the potential of credit line on UPI to reshape the way millions of Indians engage with UPI, particularly benefitting the under-banked and under-served populations by providing easy access to credit.