Fintech player Cred plans to launch a credit line on Unified Payments Interface, or UPI, by the end of the year, according to Chief Executive Officer Kunal Shah.
Cred's launch of UPI came from the realisation that credit card customers are using UPI increasingly. Furthermore, credit card customers will actively use Rupay and credit lines on UPI, and 3-4 crore customers in India who currently have credit cards will switch, proving the viability of credit lines on UPI, Shah told NDTV Profit on the sidelines of Global Fintech Fest.
Credit Line on UPI allows users to access pre-approved credit lines from banks through their UPI apps. RBI has allowed banks to offer credit lines to customers through UPI. Several banks, including Axis Bank, HDFC Bank, ICICI Bank, Indian Bank, and PNB, are live on this product.
The National Payments Corporation of India (NPCI) announced a credit line on UPI last year, and recently PhonePe also launched 'Credit Line on UPI' on its platform for merchants.
Cred also aims to gain more market share in the customer segment it targets. Shah, commenting on NPCI regulation on market share, said, “A well-balanced ecosystem is good; it keeps the ecosystem vibrant.”
Shah also noted that the company is likely to make announcements on its wealth management space after acquiring Kuvera early this year. Commenting on Cred's path to profitability, Shah said that currently the investment in the business is working out well, and the company will be profitable in a few years.
Cred's Way To Profitability | Watch
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