86400 (an Initiative of Mobileware Technologies), a leading provider of cutting-edge payments infrastructure announces the launch of its Credit-as-a- Service (CaaS) solution, designed to integrate Credit Line on UPI into the offerings of Banks and Fintech companies. This solution is set to develop and redefine digital credit accessibility, providing instant, flexible, and user-friendly credit options to millions across India.
Built on the NPCI Credit Line on UPI framework, 86400’s new solution offers financial institutions a robust and compliant solution to unlock short-term credit capabilities without disrupting existing systems. As per the prediction by 86400, this scheme is poised to revolutionize the market, offering an end-to-end solution that enables banks to conceive and rapidly launch versatile credit products.
Credit Line on UPI
Credit Line on UPI is an NPCI offering that allows users to access pre-approved credit directly within UPI-enabled apps. By integrating the solution into its advanced technology stack, 86400 enables financial institutions to offer customers easy access to credit for transactions like bill payments, shopping, and emergency expenses.
How the solution Works
The solution is designed to deliver seamless functionality for both customers and financial institutions. For financial institutions, the solution offers streamlined APIs that facilitate quick integration with their systems, ensuring minimal operational disruptions and accelerating time- to-market for credit services. For customers of these financial institutions it enables easy access to pre-approved credit directly within their existing UPI-enabled apps, catering to a variety of financial needs such as bill payments, shopping, and emergencies.
Key Benefits
1. Instant Access to Credit:
Customers can tap into pre-approved credit instantly without delays.
Real-time credit utilization and repayment capabilities simplify user experience.
2. Seamless Integration for Financial Institutions:
Quick onboarding with 86400’s robust and scalable technology stack.
Reduced setup costs and operational complexities.
3. Regulatory Compliance:
Fully adherent to RBI and NPCI guidelines, ensuring data privacy and security.
How it Matters for Financial Institutes
86400’s Credit-as-a-Service solution addresses critical needs in India’s financial ecosystem. It leverages secure APIs for seamless integration and scalable cloud infrastructure to handle high transaction volumes efficiently. It also helps financial institutions with a competitive edge by enhancing their credit offerings, leading to increased revenue through transaction volumes and interest earnings.
Fully compliant with RBI and NPCI guidelines, the solution prioritizes security and data privacy, making it a reliable choice for institutions. However for end-users, the service simplifies credit management, offering financial flexibility for both everyday and emergency needs. This innovation by 86400 not only addresses the growing demand for embedded finance but also strengthens UPI’s position as a versatile solution for both payments and credit.
Addressing Market Challenges
The solution is strategically crafted to empower banks, and fintechs in addressing critical challenges within India’s credit ecosystem. It facilitates seamless and timely credit disbursement by supporting financial institutions in enhancing accessibility for underserved populations. Additionally, the platform streamlines backend operations such as reconciliation and repayment tracking, enabling these institutions to bridge gaps in short-term credit availability for digital transactions and contribute to a more efficient and inclusive financial system.
“At 86400, we believe, just like UPI, the credit segment is a pivotal moment in the digital payment landscape of India,” said Amitabh Kanekar, Co-founder of 86400. “With our Credit-as- a-Service solution, we’re not only enabling financial institutions to scale quickly but also empowering customers with instant, reliable credit options, right at their fingertips. We’ve architected our solution to handle population-scale banking infrastructure from Day 1, ensuring it can process hundreds of millions of credit accounts efficiently. This is a major step forward in our mission to drive financial inclusion by bridging technology with accessibility.”
Source : Press Release
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