BharatPe has expanded its fintech offerings by entering the fast-growing credit-on-UPI segment with the launch of ‘Pay Later with BharatPe’, a new digital credit solution developed in partnership with YES Bank. The product has been rolled out on the BharatPe UPI platform and is enabled through the infrastructure of the National Payments Corporation of India.
The move marks a strategic step for BharatPe as it looks to deepen its presence beyond payments and merchant services, while addressing the rising demand for short-term, flexible credit among Indian consumers and small businesses.
Making Credit Accessible Through UPI
UPI has become the backbone of India’s digital payments ecosystem, handling billions of transactions every month. However, access to quick and affordable credit through UPI has remained limited for a large section of users. With Pay Later with BharatPe, the company aims to bridge this gap by offering instant credit that can be used seamlessly across UPI acceptance points.
Once approved, users receive a pre-sanctioned credit line that can be used for everyday payments such as shopping at local stores, online purchases, bill payments, and mobile recharges. The experience is designed to be simple and fully digital, eliminating paperwork and long approval timelines that traditionally discourage first-time borrowers.
Interest-Free Period and Flexible Repayment Options
A key highlight of the new offering is the interest-free credit period of up to 45 days, giving users breathing room to manage expenses without immediate repayment pressure. After the interest-free window, customers can choose to repay the amount in full or convert it into easy EMIs.
The EMI options range from three to twelve months, allowing users to plan repayments based on their cash flow. All credit details, including available limit, transaction history, repayment schedule, and outstanding dues, are visible directly within the BharatPe UPI app, ensuring transparency and control for users.
YES Bank’s Role in Powering the Credit Framework
YES Bank plays a central role in underwriting and enabling the credit facility behind Pay Later with BharatPe. Leveraging its digital banking and lending infrastructure, the bank supports onboarding, credit assessment, and regulatory compliance for the product.
The collaboration combines BharatPe’s strong distribution through its UPI user base with YES Bank’s experience in financial services, creating a scalable model for delivering credit in a responsible and compliant manner.
Rewards to Drive Adoption and Usage
To encourage adoption, BharatPe has also integrated its UPI Rewards programme with the new credit feature. Users transacting through the BharatPe UPI app can earn Zillion coins, which can be redeemed for vouchers, products, or utility bill payments.
This rewards-led approach adds an extra incentive for users to shift their daily UPI payments to the BharatPe platform while making use of the Pay Later facility.
Strengthening BharatPe’s Fintech Ecosystem
The launch of Pay Later with BharatPe reflects the company’s broader vision of building a full-stack fintech ecosystem that goes beyond payments. By offering credit directly on UPI, BharatPe is positioning itself to serve both consumers and merchants who need short-term liquidity without relying on traditional lending channels.
As competition in the credit-on-UPI space intensifies, BharatPe’s entry backed by a strong banking partner could accelerate adoption and push wider acceptance of UPI-based credit products across India.
With digital payments continuing to grow rapidly, initiatives like Pay Later with BharatPe highlight how fintech companies and banks are working together to make credit more accessible, flexible, and aligned with the everyday financial habits of Indian users.