The Bengaluru-based company Zeta has launched a stack to run credit lines on the Unified Payments Interface (UPI) digital payments platform.

Softbank-backed banking software company expects the credit market on UPI to grow to a trillion-dollar business by 2030. The company expects to process around 50% of the market with the product that will help the company provide service to its bank customers to originate, distribute and collect digitally.

Ramki Gaddipati, CEO of the Asia Pacific region and global CTO of Zeta, said, “We saw UPI volumes put a strain on core banking systems. We anticipate similar volumes on the credit line on UPI before long, and this calls for population-scale banking infrastructure, capable of processing hundreds of millions of credit accounts.”

 Ramki added that they have pre-architected their solution for this from the first day. 

UPI allows its users to transfer money across multiple banks and recorded more than 13 billion transactions during April. The increasing volumes have put a strain on banks’ core banking solutions (CBS). 

The introduction of credit lines will further increase the volume of transactions. 

The company runs HDFC’s payment and e-commerce app Payzapp, and it also works with banks such as IDFC First, RBL, and Kotak Mahindra. 

UPI is in demand for trade and business as QR codes make payments easier at merchant terminals. 

 Gaddipati said, “This is a once-in-a-generation opportunity to change the credit-inclusion landscape in India. By delivering credit at the point of need, the credit line on UPI has hit a home run for banks by completely changing the discovery, access, and cost mechanics of retail lending.”

The company was founded by Ramki Gaddipati and serial entrepreneur Bhavin Turakhia in 2015. They have raised $340 million from investors, including Mastercard and Softbank.