In a major step towards strengthening digital payments in India, the National Payments Corporation of India (NPCI) is working on introducing a new feature that will allow users to convert UPI transactions into Equated Monthly Installments (EMIs). This development could transform how consumers use UPI, offering more financial flexibility for high-value purchases across e-commerce platforms, retail outlets, travel bookings, and healthcare payments.

Currently, NPCI has already enabled RuPay Credit Cards on UPI and the Credit Line on UPI, both of which have seen strong adoption. The proposed EMI-on-UPI feature is expected to integrate seamlessly with fintech apps and digital banking platforms, allowing users to split payments into manageable monthly installments directly through UPI.

The timing of this development is significant as UPI transactions crossed 20.01 billion in August 2025, marking a 2.8% month-on-month growth. With digital adoption surging across metros and tier-2 cities, adding EMI options to UPI could further drive financial inclusion and increase UPI’s utility for both consumers and merchants.

For fintech companies, digital lenders, and banks, this move opens new opportunities to innovate and offer customized credit solutions. For consumers, it means greater convenience, easy credit access, and the ability to make big-ticket purchases without financial strain.

The EMI-on-UPI feature aligns with India’s broader push towards cashless transactions, digital lending, and fintech innovation, positioning UPI not just as a payments solution but also as a platform for affordable credit access. If rolled out successfully, it could redefine the future of digital finance in India and further cement UPI’s status as the world’s most successful real-time payment system.