Why have several participants shown a lack of interest in the UPI credit line product? 

Home » NEWS » Why have several participants shown a lack of interest in the UPI credit line product? 

Why have several participants shown a lack of interest in the UPI credit line product? 

The lack of interest stems from the absence of clear incentives and widespread awareness. Banks may hesitate because of the complexities of credit risk management, while merchants question whether the demand justifies the integration effort. Many users are unsure how a credit line differs from regular UPI payments. Without full-bodied marketing and demonstration of its unique value, the product struggles to gain traction.

The regulatory environment and associated compliance costs can deter banks and Fintech firms from actively promoting UPI credit lines. The fear of defaults and a lack of strong mechanisms for recovering loans further complicates the situation. To make this product appealing, participants need clearer frameworks, risk mitigation strategies, and a concerted effort to build trust among users and merchants.

Download Our App here
Share this post :

Recent News

India Leads the World in Fast Digital Payments, Says IMF
July 11, 2025
UPI to Get Smarter: Soon Your Devices Can Make Payments on Their Own
July 8, 2025
Digital Payments See Slight Dip in June After Record Highs in May
July 3, 2025
Govt & UPI Apps Team Up to Boost Real-Time Security on Digital Payments
June 27, 2025