Nilekani advocates offering BNPL products through UPI
Nilekani said after the launch of RuPay credit card on Unified Payments Platform (UPI) by National Payments Corporation of India (NPCI), it is the first step towards providing credit on this payment platform.
Nilekani, non-executive chairman of information technology company Infosys, said, “We are currently taking stock of the situation by issuing RuPay credit cards on the UPI platform. This is a sensible first step in this direction.
“As we move forward and the Reserve Bank’s trust in it increases, there will be many other forms of credit on UPI cards and new credit possibilities like BNPL will also be visible,” he said.
However, the Reserve Bank has raised some concerns about pre-payment solutions like BNPL.
“Imagine there are 405 million people on UPI and if they have access to credit through BNPL solutions, it will be a massive democratization of consumer use of credit,” Nilekani said.