The Future of UPI is Credit-Driven, Says Navi Founder Sachin Bansal

The Future of UPI is Credit-Driven: Sachin Bansal, the founder of fintech company Navi, believes that the future of Unified Payments Interface (UPI) transactions will be credit-driven rather than debit-based.

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The Future of UPI is Credit-Driven

The Future of UPI is Credit-Driven- is a popular tool for easy payment option

“UPI will not be dominated by the market idea of having control, power, or influence over something or someone. by debit transactions. A large share of UPI payments will be powered by credit rather than direct bank transfers. Users will increasingly rely on credit-based payments to enjoy rewards and other benefits,” Bansal shared during a discussion at an event hosted by consultancy firm Redseer in Bengaluru.

His statement comes at a time when India’s digital payments ecosystem is evolving rapidly, with Rupay Credit on UPI gaining significant traction. As per Bansal, Rupay credit cards contribute to 60% of total credit card spending in India, with 90% of these transactions occurring via UPI.

Navi’s Growing Presence in the UPI Market

Navi entered the UPI segment amid tough competition from established players like PhonePe, Google Pay, and Paytm. However, by November 2024, the company had emerged as the fourth-largest player in the UPI market, proving its rapid growth and acceptance.

Navi’s Expansion in Lending Business-The Future of UPI is Credit-Driven

Apart from digital payments, Navi has been aggressively expanding its lending operations. With a loan book of approximately ₹11,000 crore, the company aims to strike a balance between secured and unsecured lending.

“If we handle loans worth lakhs of crores in the future, depending entirely on unsecured lending would be highly risky. I anticipate secured lending will make up 50% of our portfolio as we expand.,” Bansal stated.

Challenges and Future Plans

Despite its success, Navi has faced regulatory hurdles. The Reserve Bank of India (RBI) rejected its banking license application, requiring the company to reassess its strategy. However, Bansal remains confident in Navi’s long-term growth potential. He believes that after overcoming market fluctuations, and regulatory challenges, and strengthening its risk management framework, the company is now well-positioned for expansion.

With increasing profitability, Navi is also considering an Initial Public Offering (IPO) to fuel its next growth phase.

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“In the last Six Years, we have successfully achieved most of our goals. Now, it’s time to accelerate our growth further,” Bansal concluded.