Banking tech unicorn Zeta, has launched digital credit-as-a-service product for banks. The offering is based on NPCI’s credit line on UPI scheme - which uses the UPI network to turbo-charge credit issuance in India.

Zeta estimates that the transaction volume on this scheme will exceed $1 trillion by 2030 and aims to capture 50 per cent of this market opportunity, that can help banks launch multi-form credit products.

Unlike traditional loans, credit products that leverage Credit Line on UPI offer on-demand access through any PSP payment app providing a fully digital-native experience, allowing consumers to borrow precisely how much they need, when they need it.

Ramki Gaddipati, CEO APAC & Global CTO, Zeta, said, “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 by completely changing 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.”

Founded by Bhavin Turakhia and Ramki Gaddipati in 2015, Zeta’s platform enables financial institutions to launch banking asset and liability products. Its cloud-native and API-enabled stack supports processing, issuing, lending, core banking, loyalty, digital banking apps and many other capabilities.

In 2021, Zeta raised $250 million in funding round, led by Masayoshi Son’s SoftBank, bringing its total funding raised to $340 million. It counts names like Softbank Vision Fund, Sodexo and Mastercard among its backers.

(With inputs from BL Intern Nivasini Azagappan)