NPCI to Let Users Pay via QR Code in EMIs: Here’s What You Should Know

The National Payments Corporation of India (NPCI) is reportedly developing a new feature that will allow users to convert QR code-based UPI transactions into monthly installments (EMIs), Economic Times has reported. This initiative aims to make high-value purchases more manageable for consumers, much like the EMI options available with credit cards at point-of-sale terminals.

Industry sources indicate that NPCI is working in partnership with banks and fintech companies to roll out the feature. The corporation is also considering charging an interchange fee of roughly 1.5% on EMI transactions. While the official launch date is yet to be announced, experts believe that this innovation could significantly boost high-value digital transactions. It is expected to further strengthen India’s fintech ecosystem, which currently has a market size of around $2.5 trillion and is projected to reach $12.5 trillion by 2032.

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Currently, QR-based UPI payments are widely used for everyday transactions such as grocery shopping and retail purchases. However, larger payments could not be split into EMIs, limiting financial flexibility for users. NPCI’s upcoming feature seeks to bridge this gap, enabling consumers to make installments payments for bigger purchases conveniently.

According to the Economic Times report, fintech companies are actively collaborating to integrate the EMI option into QR-based online transactions. Once implemented, users will be able to convert their UPI payments into EMIs almost instantly, mirroring the experience of credit card EMIs at physical retail terminals.

Although the rollout timeline remains uncertain, industry insiders suggest that the involvement of banks and fintech players will expand the availability of credit options on UPI. Some fintech firms, including Navi, are reportedly planning to launch this feature for their customers in the near future.

By allowing UPI users to pay for high-value purchases in installments, this new feature is expected to provide greater financial flexibility to consumers and further accelerate the growth of India’s digital payments sector.