Zeta, a leading fintech startup, has launched a new technology stack to support credit line-based transactions on the Unified Payments Interface (UPI). This move aims to revolutionize the way credit is accessed and utilized in India, potentially leading to a trillion-dollar market by 2030.
Key Highlights:
- Zeta’s new stack allows banks to offer credit lines to customers directly through UPI, eliminating the need for separate credit card applications.
- The company aims to process 50% of all UPI credit disbursals by 2030, signifying a massive opportunity for growth.
- Zeta will act as a technology service provider (TSP) for financial institutions, handling everything from customer onboarding and underwriting to lifecycle management and analytics.
- This initiative aligns with Zeta’s vision of bringing all forms of credit, including consumer loans, personal loans, and EMI loans, onto the UPI platform.
Benefits for Banks and Consumers:
- Banks: By leveraging Zeta’s technology, banks can significantly reduce the time and cost associated with offering credit products. They can also reach a wider customer base and improve their overall customer experience.
- Consumers: Consumers will benefit from a seamless and convenient way to access credit. They will no longer need to apply for separate credit cards or go through lengthy application processes.
Zeta’s Growth and Future Plans:
- The company has already raised $340 million in equity funding and is valued at $1.5 billion.
- Zeta is looking to achieve global break-even soon and is open to strategic partnerships.
- The company is currently working with a number of lenders in the United States and other geographies. In India, it powers HDFC Bank’s PayZapp mobile application.
Impact on the Indian Fintech Landscape:
Zeta’s new technology stack is expected to have a significant impact on the Indian fintech landscape. It is likely to accelerate the adoption of UPI for credit transactions, leading to a more inclusive and efficient financial system.
Overall, Zeta’s initiative is a major step forward in the evolution of the Indian fintech industry. It has the potential to transform the way credit is accessed and utilized, benefiting both banks and consumers.
Read More On: Zeta launches new stack for banks to power credit transactions on UPI
Also Read: UPI Duopoly: NPCI Faces Dilemma as Deadline Looms
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