The market opportunity for Zeta is underpinned by NPCI’s Credit Line on UPI scheme. This harnesses the power of the UPI network to turbo-charge credit issuance in India.

Zeta estimates that the transaction volume on this scheme will exceed $1trn by 2030. It aims to capture 50% of this market with its end-to-end solution. The offering enables banks to conceive and rapidly launch multi-form credit products.

India's financial landscape today presents a unique dichotomy. TransUnion CIBIL has reported that more than 160 million Indians remain underserved by traditional credit channels. Meantime, banks have pre-approved credit for millions of customers but are unable to distribute loans to them efficiently. Unlike traditional loans, credit products that leverage Credit Line on UPI offer on-demand access through any PSP payment app. This leverages a fully digital-native experience, allowing consumers to borrow precisely how much they need, when they need it.

‘Hockey-stick growth in Credit Line on UPI’

Rami Gaddipati, CEO Apac & Global CTO said: “The Credit Line on UPI is a credit distribution superhighway. This is a once-in-a-generation opportunity to change the credit inclusion landscape in India. By delivering credit at the point of need, Credit Line on UPI has hit a home run for banks. It completely changes the discovery, access, and cost mechanics of retail lending. We’re excited to enable banks to serve the credit needs of millions of customers in this completely real-time, digital-native ecosystem.”

Gaddipati highlighted the need for the banking ecosystem to prepare for hockey-stick growth in Credit Line on UPI. He said it will be similar to what India experienced when UPI was first launched. However, he added a note of caution on banks’ preparedness for Credit Line on UPI volumes.

“We saw UPI volumes put a strain on core banking systems. We anticipate similar volumes on Credit Line on UPI before long. This calls for population-scale banking infrastructure capable of processing 100s of millions of credit accounts. We have pre-architected our solution for this from Day 1.”

Zeta: investment in its banking platform tops $360m

Zeta’s vision is to democratise access to banking. It says it has spent over $360m to build what it describes as the most modern next-gen banking platform globally. Its Digital Credit as a Service offering provides a complete services and tech stack powered by Zeta’s cloud-native & next-gen core banking & payments platform. This will enable banks to manage everything from originations to collections digitally.