BharatPe has introduced “Pay Later with BharatPe”, a UPI-integrated digital credit product developed in partnership with YES Bank and deployed on the BharatPe UPI platform using NPCI infrastructure. The offering provides pre-sanctioned short-term credit for everyday transactions, aiming to expand access to seamless, paperless credit for consumers and small businesses.
Bringing Credit to the UPI Ecosystem
Unified Payments Interface (UPI) underpins India’s digital payments landscape, processing billions of transactions monthly, yet access to instant credit via UPI has been limited. BharatPe’s new product intends to close this gap by enabling real-time credit at UPI acceptance points, allowing users to pay even when they lack immediate funds.
On approval, users receive a pre-approved credit line usable for shopping at physical stores, online purchases, bill payments and mobile recharges. The onboarding and disbursal process is fully digital, removing paperwork and shortening approval timelines that often deter first-time borrowers.
Interest-Free Window and Flexible Repayment
The product offers an interest-free period of up to 45 days, after which customers can either repay the outstanding amount in full or convert it into equated monthly instalments (EMIs). EMI tenures range from three to twelve months, providing repayment flexibility aligned to individual cash flows.
All account information—available credit limit, transaction history, repayment schedule and outstanding dues—is accessible within the BharatPe UPI app, promoting transparency and user control over credit usage.
YES Bank’s Role in the Credit Framework
YES Bank underwrites and enables the lending infrastructure for Pay Later with BharatPe. The bank handles onboarding, credit assessment and compliance, leveraging its digital banking and lending capabilities.
The collaboration pairs BharatPe’s distribution through its UPI user base with YES Bank’s experience in regulated financial services, forming a scalable model to deliver responsible, compliant credit on the UPI rail.
Rewards Integration to Boost Adoption
BharatPe has linked the new credit facility with its UPI Rewards programme. Users transacting via the BharatPe app can earn Zillion coins, which are redeemable for vouchers, products or utility bill payments—an incentive designed to shift routine UPI usage onto BharatPe and promote Pay Later adoption.
Strategic Implications for BharatPe and the Market
Launching credit directly on UPI aligns with BharatPe’s strategy to evolve from a payments and merchant-services provider into a broader fintech platform offering working capital and consumer credit. By providing short-term liquidity through a familiar payments interface, BharatPe targets both consumers and small merchants that traditionally rely on informal or bank-based credit channels.
As competition in the credit-on-UPI segment grows, BharatPe’s market entry—supported by a banking partner—could accelerate user acceptance of UPI-based credit and push wider adoption across urban and semi-urban markets. The initiative also underscores increasing collaboration between fintech firms and banks to deliver credit solutions integrated with everyday digital payments.
