Zeta Rolls Out UPI-Integrated Credit As-A-Service Product For Banks

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

The company expects transaction volumes on this scheme to exceed $1 Tn by 2030 and aims to capture 50% of this market opportunity with its solution, helping banks create and launch credit products quickly.

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

Gaddipati said that the pricing for Zeta’s new product would vary depending on the specific services required by each bank.

He added, “We saw UPI volumes put a strain on core banking systems. We anticipate similar volumes on Credit Line on UPI before long, and this calls for population-scale banking infrastructure capable of processing 100s of millions of credit accounts.”

Founded by Gaddipati and Bhavin Turakhia in 2015, Zeta offers an omni-stack platform to financial institutions for processing and issuing debit and credit cards, offering loans, and fraud and risk management.

Its digital credit-as-a-service offering includes a comprehensive services and technology stack powered by Zeta’s cloud-native and next-generation core banking and payments platform, allowing banks to handle digital credit processes from originations to collections.

The offering will also include pre-integrated systems to expedite launch processes, bundled services to streamline operational efficiency, and a diverse array of product blueprints such as EMI loans, merchant loans, and agricultural loans. Additionally, it will feature capabilities for operations, compliance, and regulatory reporting, coupled with process consulting support to integrate Credit Line on UPI with existing bank systems.

Meanwhile, the startup reported a profit after tax (PAT) of INR 21.94 Cr in the financial year 2022-23 (FY23) as against a loss of INR 20.7 Cr in FY22.

The Bengaluru-based fintech unicorn’s revenue from operations grew almost 33% to INR 816.20 Cr in FY23 from INR 615.05 Cr in the previous fiscal year.

Zeta joined the unicorn club in May 2021 following a $250 Mn funding round led by Masayoshi Son’s SoftBank, bringing its total funding raised to $340 Mn. It counts names like Softbank Vision Fund, Sodexo, and Mastercard among its backers.