NPCI May Soon Offer EMI Options for UPI Payments: Report

As per the Economic Times reports, the National Payments Corporation of India (NPCI) is working on a feature that will allow users to convert their UPI transactions into equated monthly instalments (EMIs). The fintech companies will be able to integrate this option, giving customers the choice to split repayments during checkout.

How It Will Work

The EMI option on UPI is expected to function in a similar way to how card payments at point-of-sale terminals can be converted into instalments. After completing a UPI transaction through a linked credit card or credit line, customers will be able to select an EMI repayment plan instantly.

Credit Products Already on UPI

NPCI has already introduced two credit offerings on UPI. The RuPay credit card for UPI was launched in 2022 and has since gained traction. In 2023, the credit line on UPI was rolled out, giving individuals and small businesses access to pre-approved credit lines from banks for UPI payments. 

Companies such as Paytm and PhonePe are already using this system, with Paytm relaunching its buy-now-pay-later service as a UPI credit line last week.

Market Activity Around UPI Credit

The adoption of credit-based UPI services is also reflected in market movements. Startup Kiwi recently raised ₹208.5 crore (around $24 million) to expand UPI-linked credit card usage. NPCI Managing Director and CEO Dilip Asbe stated that 16% of all credit card spending in India is processed on the RuPay network, with about half of those transactions routed through UPI.

UPI Transaction Volumes

UPI continues to scale new highs in usage. In August, the number of transactions rose 2.8% month-on-month to 20.01 billion, marking a 34% increase year-on-year. The total transaction value stood at ₹24.85 lakh crore in August 2025, slightly lower than the ₹25.08 lakh crore recorded in July 2025.

Read more: UPI Raises Transaction Limits: Now Pay Up to ₹10 Lakh for Big Purchases!

Conclusion

The EMI feature is not live yet, but once introduced, it will add another layer to UPI’s offerings. The move is expected to support higher transaction volumes and expand the use of credit within India’s digital payments system.

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