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.