EMI ON UPI

Introducing India’s first EMI on UPI infrastructure

Unlock instant credit for customers via pre-approved installment plans on UPI transactions at checkout, without a credit card.

WHY NOW

550M+ UPI users. The next frontier of digital credit.

UPI is becoming default user behaviour, and EMI on UPI brings credit to the same checkout experience.

The rails already exist. This is an extension of a proven credit construct to a new, high-volume channel.

FOR ISSUERS

Leverage existing infrastructure for new revenue

Become the first issuer

A single online-checkout construct to offer Savings Account EMI on UPI at scale.

Become the first issuer

A single online-checkout construct to offer Savings Account EMI on UPI at scale.

Monetise zero-yield flows

Unlock interest and fee income from existing UPI transactions.

Monetise zero-yield flows

Unlock interest and fee income from existing UPI transactions.

Launch on existing UPI rails

Go live without new NPCI specifications or contextual code changes.

Launch on existing UPI rails

Go live without new NPCI specifications or contextual code changes.

HOW IT WORKS

Pre-qualified EMI at online checkout

Customers are pre-qualified against existing pre-approved limits before they see a price, with the plan secured by a standard UPI AutoPay mandate.

Pre-qualification

Customer's mobile number exists with the merchant; Setu runs a real-time eligibility check with the issuer against the pre-approved limit.

Pre-qualification

Customer's mobile number exists with the merchant; Setu runs a real-time eligibility check with the issuer against the pre-approved limit.

Offer & opt-in

The merchant surfaces the EMI offer inline at checkout, and the customer agrees to set up a mandate.

Offer & opt-in

The merchant surfaces the EMI offer inline at checkout, and the customer agrees to set up a mandate.

Mandate capture

The merchant creates the mandate via Setu, which launches the UPI intent for the customer to review and enter their PIN.

Mandate capture

The merchant creates the mandate via Setu, which launches the UPI intent for the customer to review and enter their PIN.

Confirm & settle

Setu confirms the mandate; the issuer books the loan, settles funds, and begins monthly recovery.

Confirm & settle

Setu confirms the mandate; the issuer books the loan, settles funds, and begins monthly recovery.

ONE SEAMLESS FLOW

From checkout to repayment — all in one seamless flow

Upfront merchant settlement meets automated EMI recovery, delivering familiar EMI economics on UPI.

Instant funding

  • Customer selects EMI on UPI at checkout

  • Issuer approves the credit line

  • Merchant receives the full purchase amount the same day

Instant funding

  • Customer selects EMI on UPI at checkout

  • Issuer approves the credit line

  • Merchant receives the full purchase amount the same day

Faster settlement

  • Funds are settled T+1 day to the merchant

  • Setu orchestrates payment and settlement flows

  • Built on existing UPI infrastructure

Faster settlement

  • Funds are settled T+1 day to the merchant

  • Setu orchestrates payment and settlement flows

  • Built on existing UPI infrastructure

Automated recovery

  • Monthly EMIs are collected via UPI AutoPay

  • Intelligent retries improve collection success

  • Real-time status and reporting

Automated recovery

  • Monthly EMIs are collected via UPI AutoPay

  • Intelligent retries improve collection success

  • Real-time status and reporting

COMMON QUESTIONS

FAQs

What is EMI on UPI and how does it work?

EMI on UPI lets a pre-approved customer split a purchase into installments at checkout using a standard UPI AutoPay mandate, without needing a credit card.

How is credit on UPI different from a credit card?

Credit on UPI runs through a bank's pre-approved limit and a UPI mandate rather than a card network, meaning no physical card or card-specific infrastructure is required for either merchant or customer.

How does a UPI credit line get set up for a customer?

A UPI credit line is pre-qualified by the issuing bank; at checkout, the customer opts in and confirms via a standard UPI mandate — no separate application process.

Which banks or NBFCs can issue EMI on UPI?

Any bank or NBFC with UPI issuance capability and a pre-approved lending book can become an EMI-on-UPI issuer, typically through a single integration with an infrastructure partner.

Does EMI on UPI require a new NPCI specification or certification?

No — EMI on UPI is built on existing UPI AutoPay rails, so issuers can launch without waiting on new NPCI specifications or major code changes.

How does merchant settlement work with EMI on UPI transactions?

The merchant typically receives the full purchase amount upfront (often same-day or T+1), while the issuer recovers the loan from the customer through scheduled UPI AutoPay debits.

What happens if a customer misses an EMI on UPI repayment?

Repayment recovery runs through UPI AutoPay's retry logic, similar to any other recurring mandate, with the issuing bank/NBFC handling collections per their own policy.

Become the first issuer to launch at scale

Earn interest and fee income with a single integration.